Senate the Senate Met at 10:30 A.M

E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 107 CONGRESS, SECOND SESSION

Vol. 148 WASHINGTON, TUESDAY, MARCH 12, 2002 No. 27 Senate The Senate met at 10:30 a.m. and was APPOINTMENT OF ACTING SCHEDULE called to order by the Honorable MARY PRESIDENT PRO TEMPORE Mr. REID. Madam President, we will L. LANDRIEU, a Senator from the State The PRESIDING OFFICER. The shortly conclude the debate on the con- of Louisiana. clerk will please read a communication firmation. The two Senators from Alas- The PRESIDING OFFICER. Rabbi to the Senate from the President pro ka are going to speak about the new Abraham Shemtov, National Director tempore (Mr. BYRD). judge they are going to get in Alaska. of American Friends of Lubavitch, will The assistant legislative clerk read I also note that we are moving along lead us in prayer this morning. the following letter: with the energy bill. We have some important amendments pending. We have U.S. SENATE, PRAYER PRESIDENT PRO TEMPORE, a number of important issues. There is The guest Chaplain offered the fol- Washington, DC, March 12, 2002. now talk of being able to complete this lowing prayer: To the Senate: bill by a week from this Friday. Almighty God, our Father in heaven, Under the provisions of rule I, paragraph 3, As everyone knows, the important grace this august body of the U.S. Sen- of the Standing Rules of the Senate, I hereby issues that remain—there are a lot of ate with wisdom, strength, vision, and appoint the Honorable MARY L. LANDRIEU, a important issues, but the matters that Senator from the State of Louisiana, to per- appear to be quite contentious are clear focus as they seek to lead this form the duties of the Chair. Nation, and as this Nation leads the those dealing with CAFE standards, ROBERT C. BYRD, ANWR drilling, and electricity regula- world in the struggle of freedom President pro tempore. tion. So it appears that there is light against tyranny and of good over evil. Ms. LANDRIEU thereupon assumed As the world marks the 100th anni- at the end of the tunnel and that we the chair as Acting President pro tem- can finish this legislation. We cer- versary since the birth of Lubavitcher pore. Rebbe, Rebbe Menachem Mendel tainly hope so. But Members are going Schneerson, of blessed memory, we f to have to be willing to come and offer must heed his teachings that unity is amendments, and Members are going so much stronger than division, good- RESERVATION OF LEADER TIME to have to be ready to vote at all times of the day and night. ness is so much better than evil. His The ACTING PRESIDENT pro tem- message to people of various origins pore. Under the previous order, the f and persuasions was that we must al- leadership time is reserved. EXECUTIVE SESSION ways be on the same side, for we are all children of the same God. f We must find the inherent goodness NOMINATION OF RALPH R. in each other and encourage one an- RECOGNITION OF THE ACTING BEISTLINE, OF ALASKA, TO BE other to fulfill our charge from the Al- MAJORITY LEADER UNITED STATES DISTRICT mighty God to perfect the world under The ACTING PRESIDENT pro tem- JUDGE FOR THE DISTRICT OF His sovereignty. In this way we can pore. The Senator from Nevada is rec- ALASKA bring light in place of darkness, re- ognized. The ACTING PRESIDENT pro tem- demption in place of despair, and hap- pore. Under the previous order, the f piness and peace to all who seek it. Senate will now go into executive ses- So as we may have opinions which ORDER OF PROCEDURE sion and proceed to the consideration differ, let us not waver. Let us be of Executive Calendar No. 706, which strong, and with God’s blessings, we Mr. REID. Madam President, I ask the clerk will report. will prevail. Amen. unanimous consent that the vote on The assistant legislative clerk read the confirmation of Executive Calendar the nomination of Ralph R. Beistline, f No. 706 occur at 11 o’clock this morn- of Alaska, to be United States District ing, that the additional time be divided Judge for the District of Alaska. PLEDGE OF ALLEGIANCE as previously provided, and that the re- The ACTING PRESIDENT pro tem- The Honorable MARY L. LANDRIEU led maining provisions of the previous pore. The Senator from Alaska. the Pledge of Allegiance, as follows: order remain in effect, with no inter- Mr. MURKOWSKI. Madam President, I pledge allegiance to the Flag of the vening action or debate. we are going to be voting in a few min- United States of America, and to the Repub- The ACTING PRESIDENT pro tem- utes on Judge Ralph Beistline to be lic for which it stands, one nation under God, pore. Without objection, it is so or- United States District Judge in my indivisible, with liberty and justice for all. dered. State of Alaska.

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

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VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1738 CONGRESSIONAL RECORD — SENATE March 12, 2002 Senator STEVENS, Representative tire delegation—Senator STEVENS, Rep- Courts of Appeal were confirmed, a YOUNG, and I are very pleased that this resentative YOUNG, and myself. We en- rate of approximately seven per year vote is about to take place. Before we thusiastically support his nomination on average, including one whole ses- vote, I would like to speak very briefly and look forward to voting on his nom- sion, 1996, in which no circuit court on the qualifications of Judge ination today. judges were confirmed at all. In only Beistline. I thank the Presiding Officer for her nine months of Democratic control of First of all, I thank all my colleagues attention. the Senate, seven of President Bush’s for moving expeditiously because in Mr. STEVENS. Madam President, nominees to the Courts of Appeals have spite of the prevailing attitude in Alas- Ralph Beistline is a lifelong Alaskan, been confirmed. Two additional circuit ka that it has taken too long to con- born in Fairbanks. He grew up in Alas- court nominees have had hearings and firm him, by standards around here it ka and will bring that important pro- the hearing scheduled for next week has moved along quite nicely. So I very spective to the bench. will include another circuit court much appreciate that. He served as a superior court judge nominee. No one would question Judge from 1992 until today and for the past 5 Under Democratic leadership we have Beistline’s qualifications or his fitness years he has been the presiding judge had more hearings, for more nominees, to serve on the Federal bench. He has in the Fairbanks Superior Court. and had more confirmations than the served with distinction in our State of He is married to Peggy Beistline and Republican leadership did for President Alaska for many years. He has always has five children: Carrie, Daniel, Ta- Clinton’s nominees during the first 9 been an asset to his community. He mara, Rebecca, and David. months of 1995. In each area—hearings, and Mrs. Beistline have had a commit- He is the former president of the number of nominees given hearings, ment to furthering the quality of life Alaska Bar Association, former presi- and number of nominees confirmed— for Alaskans, which is exemplified by dent of the Tanana Valley Bar Associa- this Committee has exceeded the com- their commitment to public service. tion, former president of the Alaska parable period when Republicans were Judge Beistline is truly an Alaskan. Conference of Judges, and a former in power. And 1995 was one of the most He was born in Fairbanks, AK. That member of the board of governors of productive years. It was 1996 and after happens to be my hometown. He is a the Alaska Bar Association. He has that the Republican majority began graduate of the University of Alaska, been a lawyer representative to the stalling the judicial confirmation proc- Fairbanks, and the University of Puget Ninth Circuit Judicial Conference and ess and the session in which only 17 Sound Law School. His heart has al- was a long time pro-bono participant. judges were confirmed all year with ways been in the golden heart city of Ralph is also an executive board none to the Courts of Appeals. Fairbanks. member of the Boy Scouts of America Additionally, under Democratic lead- Judge Beistline served honorably in and a member of Igloo #4 Pioneers of ership, we have reformed the process the Army National Guard, the Army Alaska. and practices used in the past to deny Reserves, and the Air National Guard Hailing from Fairbanks, Ralph will Committee consideration of judicial for over 17 years. He was in private also bring further geographical balance nominees. The fact that 248 judicial practice in Fairbanks, AK. During this to the court. nominees were confirmed in the prior time, Judge Beistline distinguished I thank Chairman LEAHY and Senator 61⁄2 years of Republican leadership does himself as a hard-working, fair, honest, HATCH for moving his nomination to not diminish the fact that almost 60 and very popular lawyer—if, indeed, the floor. other judicial nominees never received that is the correct terminology for law- Mr. LEAHY. Madam President, a hearing by the Senate Judiciary yers. Nevertheless, he is very well re- today, the Senate is voting on the 40th Committee or received a hearing but spected. And I am always reminded— judicial nominee to be confirmed since were never voted on by the Committee. well, it is inappropriate to reflect on last July when the Senate Judiciary The Majority Leader, Senator lawyer jokes, so I will restrain myself, Committee reorganized after the DASCHLE, the Assistant Majority Lead- with some reluctance. Democrats became the majority party er, Senator REID, and the members of Judge Beistline is a strong advocate in the Senate. With the confirmation of the Judiciary Committee have worked for the rights of his clients. He has al- Ralph Beistline of Alaska, we will have hard to return the Senate’s consider- ways maintained respect for the courts confirmed more judges in the last 9 ation of judicial nominations to a more and the legal system, and that respect months than were confirmed in 4 out of orderly and open process. We have been is matched by the manner in which his 6 years under Republican leadership. working hard to move away from the peers admire and support him. The number of judicial confirmations anonymous holds and inaction on judi- Since 1992, Ralph Beistline has served over these past nine months—40—now cial nominations that characterized so as Superior Court Judge for the State exceeds the number of judicial nomi- much of the period from 1995 through of Alaska. Through his public service, nees confirmed during all 12 months of 2000. Judge Beistline has demonstrated the 2000, 1999, 1997 and 1996. Thus, during Today’s vote to confirm the 40th ju- requisite legal temperament and the the last 9 tumultuous months we have dicial nominee since the reorganization traits that will make him clearly a dis- exceeded the one-year totals for 4 of of the Committee last July dem- tinguished Federal judge. the 6 years in which a Republican ma- onstrates that we have made a positive Obviously, he is committed to up- jority last controlled the pace of con- difference in the confirmation process holding the law, even if he may dis- firmations. by improving the pace and fairness of agree from time to time with it. Judge During the preceding 61⁄2 years in consideration of nominees for lifetime Beistline exhibits and demands fair- which a Republican majority most re- appointment to the federal courts. Not ness, respect, and diligence from all of cently controlled the pace of judicial only has the Senate been able to con- those who practice in his court. Most confirmations in the Senate, 248 judges firm more judges in a shorter time importantly, the judge has ensured were confirmed. The larger number, frame than were confirmed in 4 of the that justice is delivered fairly, respon- the total judges confirmed during past 6 years, but we have also done so sibly, and in a timely manner. I would President Clinton’s two terms includes at a faster pace than in any of the re- like to amplify that note—in a timely 2 years in which a Democratic majority cent 61⁄2 years in which Republicans manner. Oftentimes, there is a great proceeded to confirm 129 additional were most recently in the majority. deal of frustration for those of us who judges in 1993 and 1994. During the 61⁄2 I make these observations to set the believe that justice is not done in a years of Republican control of the Sen- record straight. I do not mean by my timely manner. ate, judicial confirmations averaged 38 comments to be critical of Senator He is a longstanding and distin- per year—a pace of consideration and HATCH. Many times during the 61⁄2 guished member of the Fairbanks com- confirmation that has already been ex- years he chaired the Judiciary Com- munity, the Fairbanks Bar, and the ceeded under Democratic leadership mittee, I observed that were the mat- Alaskan Bar. Judge Beistline has over these past nine months. ter left up to us, we would have made earned the respect of his colleagues. He During the recent Republican control more progress on more judicial nomi- has also earned the respect of our en- of the Senate 46 nominees to the nees. I thanked him during those years

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1739 for his efforts. I know that he would R. Beistline to be U.S. District Judge Some have suggested that 45 percent have liked to have been able to do more for the District of Alaska. of President Clinton’s circuit court and not have to leave so many vacan- I have had the pleasure of reviewing nominees were not confirmed during cies and so many nominees without ac- Judge Beistline’s distinguished legal his presidency. That number is a bit of tion. career, and I have come to the opinion an Enron-ization. It is inflated by dou- With the confirmation of Ralph Rob- that he is a fine jurist who will add a ble counting individuals that were ert Beistline, there will be no active great deal to the Federal bench in nominated more than once. For exam- vacancies on the Alaska District Court. Alaska. ple, by their numbers, Marsha Berzon— We have moved expeditiously to con- Judge Beistline began his legal ca- who was nominated in the 105th Con- sider and confirm Judge Beistline. He reer as the first law clerk for the Supe- gress, but not confirmed until the was nominated in November, received rior Court in Fairbanks, where he not 106th—would count as two nominations his ABA peer review in January, par- only completed legal research and and only one confirmation. If you re- ticipated in a hearing in February, was wrote opinions for three judges, but move the double counting and count by reported favorably by the Committee also held hearings in probate and individuals, only 23 were not con- last week, and is today being con- uncontested divorce cases. Following firmed—that’s 27 percent, as opposed to firmed. his clerkship, he maintained a litiga- 45 percent. Judge Beistline has an extensive cation practice for 17 years. He left the And of those 23 nominees who did not reer litigating civil cases in state and practice of law to become a State trial move, 4 were withdrawn, 8 lacked home Federal courts, providing pro bono court judge, and he has earned a stellar State support, 1 had incomplete paper- services in civil matters, including so- reputation for fairness and hard work work and another was nominated after cial security appeals. I congratulate among lawyers and judges in his com- the August recess in 2000. That leaves 9 the nominee and his family on his con- munity. circuit court nominees that did not re- firmation today. I have every confidence that Judge ceive action some of which had issues This nominee has the support of both Beistline will serve with distinction on that I cannot discuss publicly. Senators from his home state and ap- the Federal district court for the dis- Now, as I said, there are currently 31 pears to be the type of qualified, con- trict of Alaska. circuit court vacancies. sensus nominee that the Senate has We are in the middle of a circuit During President Clinton’s first been confirming to help fill the vacan- court vacancy crisis, and the Senate is term, circuit court vacancies never ex- cies on our Federal courts. doing nothing whatsoever to address it. ceeded 21 at the end of any year. The ACTING PRESIDENT pro tem- There were 31 vacancies in the Fed- There were only 2 circuit court nomi- pore. Who yields time? If no one yields eral courts of appeals when President nees left pending in committee at the time, time will be charged equally to Bush sent us his first 11 circuit nomi- end of President Clinton’s first year in both sides. nees on May 9, 2001, and there are 31 office. In contrast, 23 of President Mr. MURKOWSKI. Madam President, today. We are making no progress. Bush’s circuit court nominees were I suggest the absence of a quorum. Eight of President Bush’s first 11 pending in committee at the end of last The ACTING PRESIDENT pro tem- nominees have not even been scheduled year. pore. Without objection, the clerk will for hearings, despite having been pend- At the end of President Clinton’s sec- call the roll. ing for 307 days as of today. All of these ond year in office, the Senate had con- The bill clerk proceeded to call the nominees received qualified or well- firmed 19 circuit judges and there were roll. qualified ratings from the American only 15 circuit court vacancies. Mr. ENZI. Madam President, I ask Bar Association. In contrast, today in President unanimous consent that the order for A total of 22 circuit nominations are Bush’s second year, the Senate has the quorum call be rescinded. now pending for those 31 vacancies. confirmed 1 and there are 22 pending. The ACTING PRESIDENT pro tem- But we have confirmed only 1 circuit At the end of 1995, my first year as pore. Without objection, it is so or- judge this year, and only 7 since Presi- chairman, there were only 13 circuit dered. dent Bush took office. vacancies left at the end of the year. Mr. ENZI. Madam President, I ask The sixth circuit is half-staffed, with At the end of 1996, the end of Presi- unanimous consent to speak as in 8 of its 16 seats vacant. This crisis ex- dent Clinton’s first term and in a Pres- morning business. ists today despite the fact that we have idential election year, there were 21 va- The ACTING PRESIDENT pro tem- 7 Sixth Circuit nominees pending mo- cancies—only 1 higher than the number pore. Without objection, it is so or- tionless before the Judiciary Com- the Democrats left at the end of 1993 dered. mittee right now. Although the Michi- when they controlled the Senate and (The remarks of Mr. ENZI are located gan senators are blocking 3 of those Clinton was President. in today’s RECORD under ‘‘Morning Taking numbers by the end of each Business.’’) nominees by not returning blue slips, The ACTING PRESIDENT pro tem- the other 4 are completely ready to go, Congress, a Republican controlled Sen- pore. The Senator from Utah is recog- all have complete paperwork, good rat- ate has never left as many circuit va- nized. ings by the ABA, and most impor- cancies as currently exist today. At the Mr. HATCH. Madam President, par- tantly, the support of both home State end of the 104th Congress, the number liamentary inquiry: Are we on the senators. was 18, at the end of the 105th Con- Beistline nominee? The D.C. Circuit is two-thirds staffed, gress, that number was 14, and even at The ACTING PRESIDENT pro tem- with 4 of its 12 seats sitting vacant. the end of the 106th Congress, a Presi- pore. We are. Under the previous order, This is despite the fact that President dential election year, that number was the time was reserved, but all time re- Bush nominated Miguel Estrada and only 25. Today there are 31 vacancies in maining is under the control of Sen- John Roberts, who have not yet been the circuit courts. ator LEAHY and those who have been given a hearing and whose nominations Despite all the talk—and lack of ac- scheduled. have not seen the light of day since tion—the unmistakable fact is that Mr. HATCH. Since they are not here, they were nominated 307 days ago. there is a circuit court vacancy crisis I ask unanimous consent that I might There is simply no explanation for of 31 vacancies, which is far higher be able to speak. this situation other than stall tactics. than the Republicans ever let it reach, The ACTING PRESIDENT pro tem- The Senate Democrats are trying to and the current Senate leadership is pore. Without objection, it is so or- create an illusion of movement by cre- doing nothing about it. Actually, I dered. ating great media attention concerning should correct myself, they are doing Mr. HATCH. The vote is at 11, is that a small handful of nominees in order to something about it: They are making right? make it look like progress. it grow even larger. They have acted The ACTING PRESIDENT pro tem- Some try to blame the Republicans with a deliberate lack of speed, and pore. That is correct. for the circuit court vacancy crisis, but that is something the American people Mr. HATCH. Madam President, I rise that is complete bunk. Just look at the do not deserve. to support the confirmation of Ralph record: I yield the floor.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1740 CONGRESSIONAL RECORD — SENATE March 12, 2002 The ACTING PRESIDENT pro tem- The PRESIDING OFFICER. Without bers to try to recognize that it is very pore. All time having expired, the ques- objection, it is so ordered. important we have an energy bill and tion is, Will the Senate advise and con- f we get it in conference. sent to the nomination of Ralph R. I communicate to the majority whip, Beistline, of Alaska, to be United ORDER OF BUSINESS perhaps he can enlighten us at a later States District Judge for the District Mr. REID. Mr. President, I have spo- time if indeed campaign finance reform of Alaska? The yeas and nays have ken to the two managers of this legis- is going to come into play and delay been ordered. The clerk will call the lation. What we are going to do now, if us. Perhaps he can do that at such time roll. the unanimous consent request is ap- as he is able to give us some idea when The assistant legislative clerk called proved, is go to morning business until that might occur. I assume that would the roll. 12:30. not necessarily take us off the bill. Mr. NICKLES. I announce that the The amendment offered by the Sen- Mr. REID. If the Senator will yield, Senator from Pennsylvania (Mr. SPEC- ator from California, Mrs. FEINSTEIN, is Senator DASCHLE and Senator LOTT TER) and the Senator from Pennsyl- an extremely important amendment met today with some of us, and it is be- vania (Mr. SANTORUM) are necessarily dealing with derivatives, among other lieved that the campaign finance mat- absent. things. The way the legislation is now ter can be resolved in as little as 3 The PRESIDING OFFICER (Mr. CAR- written, it appears Senator GRAMM of hours, to complete everything within PER). Are there any other Senators in Texas opposes this legislation. He and that period of time, and send it to the the Chamber desiring to vote? the Senator from California are now in House. That certainly isn’t done yet. The result was announced—yeas 98, deliberations. The arrangement has Senator DASCHLE has asked for an nays 0, as follows: been made that they are going to re- agreement to be entered in the RECORD [Rollcall Vote No. 46 Ex.] port back at 2:15 today after the party tomorrow in that regard. If that were YEAS—98 conferences are completed. If there is the case, it would temporarily slow Akaka Dorgan Lott some hope that further discussion be- down this bill, but that is all. Allard Durbin Lugar Mr. MURKOWSKI. I appreciate that. Allen Edwards McCain tween them will bear some fruit, then Baucus Ensign McConnell we will go further; otherwise, we are I must say, I am pleased with the opti- Bayh Enzi Mikulski going to complete that matter today. mism shown by the majority whip. Per- Bennett Feingold Miller RAMM haps to finish in 3 hours would be a Biden Feinstein Senator G said he wants to speak Murkowski on it for a while. He may have a sec- record. Let’s work towards it. Bingaman Fitzgerald Murray Bond Frist Nelson (FL) ond-degree amendment. Mr. President, I am going to speak in Boxer Graham Nelson (NE) I say to all Members, we need to morning business for 10 minutes. Breaux Gramm Nickles The PRESIDING OFFICER. The Sen- Brownback Grassley move forward. As I indicated on behalf Reed Bunning Gregg of the majority leader today, we have ator from Alaska. Reid Burns Hagel Roberts light at the end of the tunnel. The mi- f Byrd Harkin Rockefeller Campbell Hatch nority leader has indicated he thinks Sarbanes IRAQ Cantwell Helms we can finish this bill by a week from Carnahan Hollings Schumer this Friday. We agree that is certainly Sessions Mr. MURKOWSKI. Mr. President, Carper Hutchinson the way it should be. yesterday our President, President Chafee Hutchison Shelby Cleland Inhofe Smith (NH) We have some important matters to George W. Bush, marked the 6-month Clinton Inouye Smith (OR) consider. We have to do something anniversary of the terrorist attacks. I Cochran Jeffords Snowe with ANWR, we have to do something think we would all agree he used some Collins Johnson Stabenow Conrad Kennedy Stevens with CAFE standards, and electricity. very strong words for our adversaries. Corzine Kerry Thomas We hope those three very difficult, con- I quote President Bush: Craig Kohl Thompson tentious issues can be disposed of. And Every nation in our coalition must take Thurmond Crapo Kyl we would indicate we are going to fin- seriously the growing threat of terror on a Daschle Landrieu Torricelli Dayton Leahy Voinovich ish derivatives before we move to catastrophic scale—terror armed with bio- DeWine Levin Warner something else, unless there is some logical, chemical or nuclear weapons. Dodd Lieberman Wellstone agreement between the two Senators. That was his comment yesterday. Domenici Lincoln Wyden We cannot keep bouncing around this Further, he stated: NOT VOTING—2 legislation. Some states that sponsor terror are seek- Santorum Specter f ing or already possess weapons of mass de- The nomination was confirmed. struction. Terrorist groups are hungry for Mr. REID. Mr. President, I move to MORNING BUSINESS these weapons and would use them without a reconsider the vote. Mr. REID. So, Mr. President, I ask hint of conscience. Mr. MURKOWSKI. I move to lay that unanimous consent that the Senate Further quoting him: motion on the table. now proceed to a period of morning In preventing the spread of weapons of The motion to lay on the table was business, with Senators allowed to mass destruction, there is no margin for agreed to. speak therein for a period of 10 minutes error and no chance to learn from mistakes. The PRESIDING OFFICER. Under each, until 12:30 p.m., when, under the Further quoting him: the previous order, the motion to re- previous order, we will recess for the Our coalition must act deliberately, but in- consider is laid upon the table, and the weekly party conferences. action is not an option. President shall be immediately noti- The PRESIDING OFFICER. Is there I would refer to that again: ‘‘inaction fied of the Senate’s action. objection? is not an option.’’ f Without objection, it is so ordered. He added: LEGISLATIVE SESSION The Senator from Alaska. Men with no respect for life must never be The PRESIDING OFFICER. Under f allowed to control the ultimate instruments of death. the previous order, the Senate will re- THE ENERGY BILL turn to legislative session. The President did not name names, Mr. REID. Mr. President, I suggest Mr. MURKOWSKI. Mr. President, I but it is becoming increasingly clear the absence of a quorum. concur with the statement of the ma- that when we talk about targeting ter- The PRESIDING OFFICER. The jority whip. I look forward to, hope- ror, we are talking about targeting clerk will call the roll. fully, moving with some dispatch on Saddam Hussein’s Iraq. The assistant legislative clerk pro- the energy bill. There are probably a We know he has chemical weapons ceeded to call the roll. few more contentious issues, as you because we have watched him use them Mr. REID. Mr. President, I ask unan- know: Electricity, certainly ANWR, on his own people. We know Saddam imous consent the order for the CAFE, renewables. So we have our wants nuclear weapons because his quorum call be rescinded. work cut out for us. I encourage Mem- chief bomb maker defected to the West

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1741 with a wealth of information on their We did go into a hotel and Saddam for the reason that America and the program. We know, very well, he has a Hussein met us and was supposedly world moves on oil. missile capability because he fired doz- going to host lunch. We had a long dis- Here is a chart that is relatively new. ens of missiles on Israel during the gulf cussion about human rights activities. It shows crude oil imports from Iraq to war. We talked about the cannons that had the United States in 2001. This is by So what has he been up to? We can- been found on the docks in London. We month, January going over to Sep- not say for sure because we have not discussed the triggering devices. And tember. That was an all-time high. had a U.N. inspector there since De- he had an answer for everything. He That was at a time where the terrorist cember of 1998. So he has had 1999, 2000, would throw out a booklet designed by activities took place in Pennsylvania 2001—clearly over 31⁄2 years to continue the Baghdad Institute of Technology. and Washington and New York. his development of weapons of mass de- At one point he got rather belligerent It is very significant to recognize struction. We know that for a fact. We and suggested we had no business in his that we will have to deal with Iraq, and just do not know what they are, and we country talking to him about the atti- the President has kind of laid down a do not know what he is going to do tude of the people of Iraq. card that suggests we want to have with them. One can only imagine what He asked us to go out on the balcony. U.N. inspectors in Iraq. he has been able to accomplish during And he said: There are five of you, five Saddam Hussein laid down his card that timeframe. helicopters. You can go anywhere in yesterday. His card was quite expres- Some of you may have seen the spe- Iraq you want and ask what the people sive of the prevailing attitude of his re- cial on CNN the other day where they really think of Saddam Hussein. How- gime. No, we are not going to let U.N. identified clearly the threat of Iraq, ard Metzenbaum declined the invita- inspectors into Iraq. and a historical review from the time tion for reasons of security, to put it So what are we going to do? It is our of the Persian Gulf war: His experimen- mildly. So did the rest of us. move next. We waited too long to deal tation of using chemical weapons on Nevertheless, we had an opportunity with bin Laden. We waited too long to his own people; his arsenal, a portion of to observe this individual. To suggest deal with al-Qaida. So this is a scenario which was destroyed at that time he is unpredictable is an understate- that won’t be over this week or next. under the U.N. auspices. Since that ment. He is very unpredictable. His We cannot afford to wait too long to time we have just observed him as he value on human life, as evident over an deal with Saddam Hussein. As long as continues to rule as a dictator, as one extended period of time, speaks for he is in power, he will continue to who obviously has seen fit to go to ex- itself. threaten the world as a member of the traordinary means to ensure his own One can conclude that Iraq is a very axis of evil. All the tools he needs are safety, by simply wiping out those crit- unstable area that we are depending on now within his grasp. ics of his regime. for oil. As I am sure the occupant of Reducing foreign dependence on oil I am not going to try to typify this the chair, the Senator from New York, can lessen the influence and reach of individual. I have met him. I have been recognizes, on a particular day of Sep- Saddam Hussein. There are solutions in Baghdad. As a matter of fact, I tember 11, we were importing a million that must begin right here at home. think I am the only Senator who is barrels of oil a day from Iraq. At this Doing so will not only help ensure our still in the Senate who met with Sad- time it is a little over 800,000 barrels a energy security; it will further ensure dam Hussein prior to the Persian Gulf our national security. war. The Senator from Idaho, Mr. day. Interestingly enough, on that Again, I make another appeal to my McClure, was with us. Senator Dole tragic day in September, that was a colleagues to recognize the role that was with us. Also, Senator Simpson record, an 11-year-old record. What do we do with his oil? We use it Alaska could play by opening up the from Wyoming was with us. The Sen- to drive to work, use it in schoolbuses, Arctic National Wildlife Refuge. On ator from Ohio, Howard Metzenbaum, to take our kids, whatever. It is the each desk of Members, we have a series was with us. It was a very interesting oppor- fuel the Navy jets use, which twice this of exhibits that highlight the reality tunity. We had been in Egypt and were year already bombed Saddam Hussein associated with opening up this area. It advised we should go over to visit Sad- and every day enforces a no-fly zone is still very difficult to get Members to dam Hussein in Iraq. We did go over over his skies. Last year Iraqis shot at focus on a couple of stark realities. there. We were met by our Ambas- U.S. forces some 400 times. We re- I point out again the size of the area sador, April Gillespie. We were sup- sponded in force 125 times. I ask, can in question in the green. That is 1.5 posed to meet Saddam Hussein at the we count on his oil if Baghdad is the million acres. That is the only area up airport in Baghdad. She said that she next stop in the war of terror? for proposal. ANWR itself is a much was sorry, that Saddam Hussein I have charts here that clearly show larger area. It is a 19-million acre area changed the itinerary. He was not the increase of Iraqi oil production in consisting of 8 million acres of wilder- there. We were supposed to go up to the Mideast, and you can see 1.1 mil- ness and 9.5 million acres of refuge. Mosul. lion barrels of Iraqi oil—this is where The green area is the area in question. So the Foreign Minister, Tariq Aziz, American families get their oil—the Then the idea is what would be the who is still there, said that Saddam Persian Gulf, almost 3 million barrels; footprint there? In the House bill, H.R. had sent his airplane down to take us OPEC, 5.5 million barrels. Oil has 4, the footprint is 2,000 acres. That is a up to Mosul. We were somewhat reluc- jumped up to the highest price in 6 conglomeration of just a combination tant to get in Saddam’s airplane, as months. It is a little over $24.50 a bar- of drilling activities on land plus devel- you might imagine. We said: We will rel. oping pipelines. take our own airplane. We had an Air Gasoline prices are at the highest It cannot go over 2,000 acres. That is Force aircraft. There was some discus- they have been in 6 months. This is in- pretty insignificant considering using sion. Then they came back and said: dicative of particularly the power of an area of 1.5 million acres. No, the runway was under repair. Our the OPEC cartel, which, by controlling As we look at the merits, the ques- plane was too big; they would not be the supply, clearly controls the price. tion is, Can we do it safely? The answer able to accommodate our airplane. We have other charts here that I is, yes, because we use new technology Then Foreign Minister Tariq Aziz said: think show a significant figure. We in now. We have ice roads and these ice I am going with you. That made us this country have been able to do a roads don’t require gravel. They are somewhat more at ease. Somewhat re- pretty good job of conserving through simply a process where you lay water luctantly, we did climb into the air- higher efficiency. As this chart shows, on the tundra, it freezes, and then you plane and fly up to Mosul. consumption per thousand Btu has can move the vehicles, you can move It was ironic because, when we land- dropped from about 18 down to about 11 drilling rigs and so forth. ed, they said: we won’t have to take in the period of 1973 through the year That shows a typical drilling rig. Be- you back because we have finished re- 2000. That is a 42-percent decline. While yond the area up on the top you see the pairing the runway and your airplane conservation has made significant ad- Arctic Ocean. You can see an ice road can come and get you. We knew we vancements, we still are significantly leading from the platform. That is the were set up to make a story. dependent on imported sources of oil new technology. To suggest we are

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1742 CONGRESSIONAL RECORD — SENATE March 12, 2002 going to leave a scar on the tundra in the knowledge that we have gained in pink is what we call the 1002 area. That the summertime, which is quite short— new technology in opening up this area is a million and a half acres, where we and I will show you a picture of the safely and protecting the caribou. are talking about providing leases. The summertime, this area, which clearly There is always a new argument. New Native area is the white area. This is is a result of the technology. There is ones continually pop up. One is the the 92,000 acres. You can see the area a well that has been spudded in. You question of the polar bear. Most of the offshore; that is the Arctic Ocean. It is can see there are no roads to it because polar bears are over by the area near free of ice for only about 40 days a there was an ice road only during the Barrow, as opposed to the ANWR area. year. winter. We acknowledge that there are a few in The problem the Native people have Winter is pretty long up there. It is the ANWR area. But the point is, under is access because they cannot have any about 101⁄2 months a year. There are the marine mammal law, you can’t surface access outside their 92,000 acres only about 40 days of ice-free time take polar bears for trophies in the of land. If they wanted to move over to when the Arctic Ocean is open. United States. That has significantly where the pipeline is, they would move Nevertheless, in spite of the facts rel- increased the lifespan of the polar bear. west and beyond the area on the chart. ative to being able to open ANWR, If you want to hunt polar bear, go to The question is, Is it fair and equitable America’s environmental community Russia and Canada. You can’t do it in that these people are prevented from has latched onto this, and they have the United States. These are facts that having access? misrepresented issue after issue. The are overlooked as we look at the argu- We think there should be some provi- issue they continually propose is that ments against opening this area. sion in the ANWR proposal to allow the there is only a 6-month supply. We The last point is, why disturb this Native residents of this area to have don’t know what is in ANWR and they unspoiled, pristine area? The fact is, access across public land for their own don’t know. The range is from 5.6 bil- this area has had the footprints of man benefit. We intend to pursue this in lion barrels to 16 billion barrels. If it on numerous occasions. It was an area some manner in this debate as we de- were somewhere in the middle, it would where there were radar stations, an velop the merits of opening up ANWR. be as big as Prudhoe Bay, and Prudhoe area where there is a Native village If we were to open it up for explo- Bay has contributed 20 to 25 percent of called Kaktovic, which has roughly 280 ration, this would not be a question. the total crude oil production in the people. This is a picture of the village. Clearly, there is a lack of support by U.S. in the last 27 years. This is in ANWR—physically there. Members, based on information from Those are facts. If you look over here There is an airport and radar stations. the environmental community that on this chart, you will see the 800-mile You can see the Arctic Ocean. We have this area is undisturbed and should not pipeline. That infrastructure is already pictures of the local community hall be initiated for exploration of oil and in place. That is one of the construc- with kids on a snowmobile. This is vil- gas, even though geologists say it is tion wonders of the world. As a con- lage life in Arctic Alaska, way above the most likely area for a major dis- sequence, it has been able to move this the Arctic Circle. We have a picture covery. Still we have an injustice and volume of oil. It is only utilized to half showing kids going to school. These an inequity to these people. I don’t of its capacity. It is currently carrying kids have dreams and aspirations just think there has been enough attention a little over a million barrels a day. It as our kids. They are looking for a fu- given to the plight of these people who, can carry as many as 2 million barrels ture—jobs, health care, educational op- as any other aboriginal people, are en- a day. So if oil is discovered in this portunities. They are the same as any- sured certain rights under our Con- magnitude, you would be putting a body else. Nobody shovels the snow stitution, and those rights have not pipeline over from the ANWR area to here; nevertheless, it is a pretty hardy been granted them. the 800-mile pipeline down to Valdez, environment. To suggest that somehow As a consequence, there is an injus- and it is a relatively simple engineer- this land is untouched is totally unre- tice to the people of the village of ing operation. alistic and misleading. Kaktovic and members of the Arctic The question is, Do we want ANWR Speaking for these children, I think Slope Aboriginal Corporation, which is open and do we want to avail ourselves we have an obligation to recognize the governing body in that area. of the likelihood of a major discovery? something. I have another chart that With that explanation, I encourage People ask, why ANWR? That is the shows the Native land within ANWR Members to think a little bit about area where geologists tell us is the and the injustice that is done to these fairness and equity and what we owe greatest likelihood for the greatest dis- people, and I think it deserves a little these aboriginal people. We certainly covery in the entire continent of North enlightenment. owe them reasonable access out of the America. So to suggest it is a 6-month This is the map that shows the top, lands they own fee simple. supply is unrealistic and misleading. If and there are about 92,000 acres in Madam President, nobody else is re- we didn’t import and produce any oil, ANWR that belong to the Native people questing recognition, so I suggest the theoretically, it might be a 6-month of Kaktovic. It is a smaller chart. We absence of a quorum. supply. On the other hand, it is just as should have that chart. What we have The PRESIDING OFFICER (Mrs. probable to suggest it would supply the here—and let’s go back to the other CLINTON). The clerk will call the roll. Nation with 20 to 25 percent of its total chart that shows Alaska as a whole be- The legislative clerk proceeded to crude oil for the next 30 or 40 years. If cause I can make my point with that call the roll. it comes in in the magnitude that we one. Within this area of the green, Mr. REID. Madam President, I ask anticipate, it would offset imported oil which is the Arctic Coastal Plain, up unanimous consent that the order for from Iraq for 40 years and from Saudi top we have the village of Kaktovic, the quorum call be rescinded. Arabia for 30 years. The other issue is and that little white spot covers the The PRESIDING OFFICER. Without that it would take an extended time- land that they own fee simple—92,000 objection, it is so ordered. frame to get on line. I remind col- acres. They have no access across Fed- f leagues that in 1995 we passed ANWR. eral land, which is what ANWR is. It was vetoed by the President. If we They are landlocked by Federal owner- RECESS would have that on line today, we ship. So as a consequence, the concept Mr. REID. Madam President, I ask would not be as dependent on Iraq as of having fee simple land really doesn’t unanimous consent that the Senate we are currently. So it is a matter that mean very much if you can’t use the stand in recess until 2:15 p.m. today. will come up before the Congress as land and have access, and so forth. There being no objection, the Senate, part of the energy bill. They believe there is an injustice at 12:19 p.m., recessed until 2:15 p.m. The House has done its job; it has being done here in their Native land. and reassembled when called to order passed H.R. 4 with ANWR in it. It is up While it is theirs, it doesn’t provide by the Presiding Officer (Mr. CLELAND). to us to address this issue now. I en- them with any access—here is the Mr. REID. I suggest the absence of a courage my colleagues to try to reflect chart I am looking for. Madam Presi- quorum. accurate information, not misleading dent, we have the specifics here. This The PRESIDING OFFICER. The information that would detract from general area that you are looking at in clerk will call the roll.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1743 The assistant legislative clerk pro- amendment, I thank the assistant ma- (1) issue a solicitation to industry seeking ceeded to call the roll. jority leader for allowing us to set proposals from joint venture project teams Mr. REID. Mr. President, I ask unan- aside what is an important but I think comprised of reactor vendors and power gen- imous consent that the order for the contentious amendment if we don’t eration companies to participate in the Nu- clear Power 2010 program; quorum call be rescinded. work out the tremendous complication (2) seek innovative business arrangements, The PRESIDING OFFICER. Without of dealing with derivatives. It is a com- such as consortia among designers, construc- objection, it is so ordered. plex area and we well ought to know tors, nuclear steam supply systems and f what we are doing. Members and staff major equipment suppliers, and plant owner/ of the Banking Committee are now operators, with strong and common incen- NATIONAL LABORATORIES PART- working with Senator FEINSTEIN on it. tives to build and operate new plants in the NERSHIP IMPROVEMENT ACT OF We are hopeful something can be United States; 2001—Resumed (3) conduct the Nuclear Power 2010 pro- worked out in this area. The PRESIDING OFFICER. The gram consistent with the findings of A Road- I am pleased both sides have agreed map to Deploy New Nuclear Power Plants in clerk will report the bill by title. to the amendment that I will send to the United States by 2010 issued by the Near- The assistant legislative clerk read the desk. Term Deployment Working Group of the Nu- as follows: Mr. MURKOWSKI. Mr. President, if clear Energy Research Advisory Committee A bill (S. 517) to authorize funding for the the Senator from Idaho will yield, Sen- of the Department of Energy; Department of Energy to enhance its mis- ator LANDRIEU also has an amend- (4) rely upon the expertise and capabilities sion areas through technology transfer and ment—the hydrogen protection amend- of the Department of Energy national lab- partnerships for fiscal years 2002 through oratories and sites in the areas of advanced ment—which we understand has been nuclear fuel cycles and fuels testing, giving 2006, and for other purposes. agreed to. She will offer that amend- Pending: consideration to existing lead laboratory ment after Senator CRAIG’s amend- designations and the unique capabilities and Daschle/Bingaman further modified pend- ment. We hope to dispose of both. facilities available at each national labora- ing amendment No. 2917, in the nature of a There are two more amendments tory and site; substitute. that we have not agreed to—Senator (5) pursue deployment of both water-cooled Feinstein amendment No. 2989 (to amend- DOMENICI on spent fuel and Senator and gas-cooled reactor designs on a dual ment No. 2917), to provide regulatory over- track basis that will provide maximum po- LANDRIEU on licensing new reactors. sight over energy trading markets. tential for the success of both; Dorgan amendment No. 2993 (to amend- But we can continue to work on those (6) include participation of international ment No. 2917), to provide for both training if we can dispose of the two. collaborators in research and design efforts and continuing education relating to electric I, of course, support Senator CRAIG’s where beneficial; and power generation plant technologies and op- amendment as well. (7) seek to accomplish the essential regu- erations. AMENDMENT NO. 2995 TO AMENDMENT NO. 2917 latory and technical work, both generic and Mr. REID. Mr. President, I have con- Mr. CRAIG. Mr. President, I send an design-specific, to make possible new nuclear ferred with the managers of the bill, amendment to the desk. plants within this decade. (e) AUTHORIZATION OF APPROPRIATIONS.— and with Senator DASCHLE, on the The PRESIDING OFFICER. Without There are authorized to be appropriated to Feinstein amendment, which is pend- objection, the pending amendment is the Secretary to carry out the purposes of ing. During the break, there was a long set aside, and the clerk will report. this section such sums as are necessary for conversation with the two managers, The assistant legislative clerk read fiscal year 2003 and for each fiscal year and with Senator FEINSTEIN and Sen- as follows: thereafter. ator GRAMM. It is believed it would be The Senator from Idaho [Mr. CRAIG] pro- Mr. CRAIG. Mr. President, the in the best interest to set this amend- poses an amendment numbered 2995 to amendment authorizes a new program ment aside and move to some other amendment No. 2917. within the Department of Energy matters. Everyone should understand Mr. CRAIG. Mr. President, I ask called Nuclear Power 2010. The new that we have every belief that Senators unanimous consent that reading of the program was proposed in the adminis- GRAMM and FEINSTEIN are working in amendment be dispensed with. tration’s fiscal year 2003 budget. Sen- good faith to try to come up with some The PRESIDING OFFICER. Without ator MURKOWSKI, Senator LANDRIEU, way to resolve this issue. If in fact objection, it is so ordered. Senator DOMENICI, and Senator THUR- The amendment is as follows: they do not, though, Senator DASCHLE MOND are supporters of this effort. We has indicated that he would be ready to (Purpose: To direct the Secretary of Energy think it is the appropriate direction to file a cloture motion on the Feinstein to carry out a program within the Depart- go in the development of a new energy amendment so we can move forward on ment of Energy to develop advanced reactor technologies and demonstrate new reg- package. that. We hope we do not have to do ulatory processes for next generation nu- The goal of Nuclear Power 2010 is to that. I am confident that we will not. clear power plants) aggressively pursue activities that will But in case we cannot resolve the mat- At the appropriate place in the amend- result in the completion of designs for ter, Senator DASCHLE is ready to file a ment, insert the following: the next generation of nuclear reac- cloture motion on the Feinstein SEC. . NUCLEAR POWER 2010. tors. amendment. (a) DEFINITIONS.—In this section: This program will also look for ways We will ask to move off this impor- (1) SECRETARY.—The term ‘‘Secretary’’ to reduce the regulatory uncertainties tant matter dealing with derivatives. means the Secretary of Energy. which have been obstacles to the build- The two managers have some amend- (2) OFFICE.—The term ‘‘Office’’ means the ing of new nuclear plants. This pro- Office of Nuclear Energy Science and Tech- ments they can work on that wouldn’t nology of the Department of Energy. gram would incorporate cost sharing take long at all. (3) DIRECTOR.—The term ‘‘Director’’ means between government and industry to I have spoken to Senator LEVIN. He is the Director of the Office of Nuclear Energy ensure that the outcome of this pro- going to come and offer an amendment Science and Technology of the Department gram will be not only beneficial but and/or substitute on the provision in of Energy. useful to both sides as new designs are the bill that deals with CAFE stand- (4) PROGRAM.—The term ‘‘Program’’ means developed. ards. That should begin in the next 15 the Nuclear Power 2010 Program. This program will also garner the (b) ESTABLISHMENT.—The Secretary shall minutes or so. Is that in keeping with carry out a program, to be managed by the tremendous creativity of the technical what the two managers understand? Director. minds within the Department of En- Mr. BINGAMAN. Mr. President, in (c) PURPOSE.—The program shall aggres- ergy and our National Laboratories— response, let me say it is in keeping, sively pursue those activities that will result some great minds that have been sit- and I know the Senator from Idaho is in regulatory approvals and design comple- ting somewhat idle in the area of new here and ready to offer an amendment. tion in a phased approach, with joint govern- design and reactor development over His amendment is acceptable. ment/industry cost sharing, which would the last number of years. allow for the construction and startup of The PRESIDING OFFICER. The Sen- new nuclear plants in the United States by In my home State of Idaho, for exam- ator from Idaho. 2010. ple, Argon West was the first ever nu- Mr. CRAIG. Mr. President, before I (d) ACTIVITIES.—In carrying out the pro- clear effort that lit the first lightbulb. make some brief comments on the gram, the Director shall— Strangely enough, a lot of folks don’t

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1744 CONGRESSIONAL RECORD — SENATE March 12, 2002 know that about Idaho. But the reactor lenges have curtailed new nuclear As we know, nuclear power currently that generated that was an experi- plants. contributes about 20 percent of the mental breeder reactor. That was well In May of last year, I wrote to Vice total energy produced in this country. over 50 years ago. President CHENEY as head of the Presi- France is at about 75 percent; Sweden Our National Laboratories have been dent’s Energy Task Force. In my let- is at about 46; Japan, 30 percent. So, extensively involved. This reinvolves ter, I noted how pleased I was to learn clearly, this is an amendment that will them. We hope it reinvigorates them. that the Administration was com- be an investment in the future. We sup- I think all of us recognize that clean mitted to developing a comprehensive port the adoption of the amendment. I sources of abundant energy are critical national energy strategy that would urge adoption of the amendment. for the future of this country. The include a renewed consideration of nu- The PRESIDING OFFICER. If there cleanest is nuclear. clear power. I suggested to the Vice is no further debate, without objection, The 2010 amendment is the kind of President, that the Administration the amendment is agreed to. program that I think sends us in the consider co-locating advanced tech- The amendment (No. 2995) was agreed direction that we want to see our en- nology commercial nuclear power pro- to. ergy base going as an integral part of duction facilities on existing Depart- Mr. MURKOWSKI. I move to recon- energy’s diverse mix in our country. ment of Energy reservations. sider the vote. We believe the 20 percent now made up Utilizing Department of Energy fa- Mr. CRAIG. I move to lay that mo- of current operating reactors will have cilities would mitigate any number of tion on the table. to go higher in future years as we look problems associated with building new The motion to lay on the table was at issues of climate change, weather, nuclear plants. To begin with, there is agreed to. and, of course, the unpredictable fluc- no need to secure new land. In addition The PRESIDING OFFICER. The Sen- tuation in a variety of other energy to the fact that this is already Federal ator from North Dakota is recognized. sources. property, in general, DOE facilities are AMENDMENT NO. 2993 That is the purpose and the intent of large isolated areas that are highly se- Mr. DORGAN. Mr. President, yester- the amendment. It has been accepted. cure. Also, individuals living near day I offered an amendment that subse- I hope this amendment can be voice these locations are usually supportive quently was set aside. It is amendment voted. of nuclear initiatives. They know that No. 2993. The amendment is to estab- The PRESIDING OFFICER. The Sen- having a nuclear facility nearby is not lish a National Power Plant Operations ator from New Mexico. a safety issue. As such, we avoid the Technology and Education Center. The Mr. BINGAMAN. Mr. President, we ‘‘not in my backyard’’ syndrome. Fi- amendment, I believe, is noncontrover- have reviewed the amendment of the nally, building new nuclear reactors on sial. Senator from Idaho, and it certainly is existing DOE facilities reduces the I know the Senator from Alaska indi- acceptable on this side. I support the amount of new infrastructure required cated he would accept the amendment. amendment. I urge my colleagues to as companies would be ‘‘leveraging’’ I believe the Senator from New Mexico support it. We should add it to the bill. against what already exists at these lo- indicated the same. I ask that it be im- The PRESIDING OFFICER. Is there cations. mediately considered favorably by the further debate on the amendment? The Energy Task Force and Sec- Senate. Mr. THURMOND. Mr. President, I am retary of Energy Spencer Abraham did The PRESIDING OFFICER. Is there pleased to cosponsor this amendment not require much convincing. The Sec- objection? and compliment Senator CRAIG for his retary called upon industry to deter- Mr. MURKOWSKI. Reserving the leadership on this issue and nuclear mine interest in developing advanced right to object, and I shall not object, power in general. This amendment au- technology commercial nuclear plants my understanding is that we are still thorizes the Department of Energy’s at DOE locations. I have been advised examining it. I have no reason to be- Nuclear Power 2010 initiative, a multi- that a number of proposals were relieve there will be an objection, but year program for the Department of ceived from some of the top energy staff has asked for a little more time. Mr. BINGAMAN. Mr. President, I Energy to partner with the private sec- companies in the Nation. tor to explore both Federal and private When Secretary Abraham unveiled suggest the absence of a quorum. The PRESIDING OFFICER. The sites that could host new nuclear the Nuclear Power 2010 initiative, he plants; to demonstrate the efficiency of clerk will call the roll. announced awards to two nuclear utili- The bill clerk proceeded to call the and timeliness of key Nuclear Regu- ties to conduct initial studies of sev- roll. latory Commission licensing processes eral sites that could eventually host Mr. MURKOWSKI. Mr. President, I designed to make licensing new plants new nuclear plants. In addition to sev- ask unanimous consent the order for more efficient, effective and predict- eral private sites, the Secretary identi- the quorum call be rescinded. able; and to conduct research needed to fied the Department of Energy’s Idaho The PRESIDING OFFICER. Without make the safest and most efficient nu- National Engineering and Environ- objection, it is so ordered. clear plant technologies available in mental Laboratory in Idaho, the Sa- Mr. MURKOWSKI. Mr. President, in the United States. vannah River Site in my hometown of response to Senator DORGAN, we have I am a strong proponent of nuclear Aiken, SC, and the Portsmith site in cleared the amendment. I appreciate power because it is among the cleanest Ohio as sites to be considered. his forbearance. We had one question sources of energy in the world today. These DOE sites were ideal locations that has been answered satisfactorily. Additionally it is reliable, efficient and to locate nuclear projects fifty years So I urge the Senator to go ahead. I abundant. Presently, the United States ago. With the right physical character- support the adoption of the amend- gets approximately 20 percent of its istics, experienced workforces and sup- ment. power from nuclear plants. Those portive local communities, they re- The PRESIDING OFFICER. The Sen- plants in operation currently cannot main so today. I believe it makes per- ator from North Dakota. operate indefinitely. Accordingly, in fect sense to use these existing assets Mr. DORGAN. Mr. President, I thank order to maintain the energy produc- as a platform upon which to expand our the Senator from Alaska for his cour- tion we receive from nuclear power civilian nuclear power capabilities. tesy. I ask for the immediate consider- today, the United States will need to This initiative is good government ation of amendment No. 2993. build new nuclear facilities. and I am pleased that it is included in The PRESIDING OFFICER. Without Fortunately, advanced reactor tech- this package. objection, it is so ordered. nologies are now available that are Mr. MURKOWSKI. Mr. President, I If there is no further debate on the safer, smaller and more capable. As we join Senator BINGAMAN in support of amendment, without objection, the are all aware, however, bringing new the amendment. It establishes a pro- amendment is agreed to. civilian nuclear plants on-line is a gram within the Department of Energy The amendment (No. 2993) was agreed lengthy process. Regretfully, consider- to aggressively pursue activities that to. ations such as site selection concerns, will lead to, hopefully, the develop- Mr. MURKOWSKI. I move to recon- licensing impediments, and legal chal- ment of new nuclear plants. sider the vote.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1745 Mr. DORGAN. I move to lay that mo- ronment and a healthy local economy. problems faced by our Nation’s rural tion on the table. There is a real cost in human misery and remote communities. The motion to lay on the table was and to the health and welfare of every- I encourage my colleagues to support agreed to. one—especially children and elderly— this amendment. Mr. DORGAN. Mr. President, I sug- from poor or polluted water or bad Mr. MURKOWSKI. Mr. President, I gest the absence of a quorum. housing or an inefficient and expensive urge adoption of the amendment. The PRESIDING OFFICER. The power system. The PRESIDING OFFICER. If there clerk will call the roll. The problems in Alaska are a perfect is no further debate on the amendment, The bill clerk proceeded to call the example: 190 villages have ‘‘unsafe’’ without objection, the amendment is roll. sanitation systems; 135 villages still agreed to. Mr. MURKOWSKI. Mr. President, I use ‘‘honey buckets’’ for waste dis- The amendment (No. 2996) was agreed to. ask unanimous consent the order for posal; and only 31 villages have a fully Mr. REID. I move to reconsider the the quorum call be rescinded. safe, piped water system. The PRESIDING OFFICER. Without vote. It is not surprising that Hepatitis B Mr. MURKOWSKI. I move to lay that objection, it is so ordered. infections in rural Alaska are five motion on the table. AMENDMENT NO. 2996 TO AMENDMENT NO. 2917 times more common than in urban The motion to lay on the table was Mr. MURKOWSKI. Mr. President, we Alaska. Similarly, most small commu- agreed to. have one more amendment we would nities and villages in Alaska are not The PRESIDING OFFICER. The Sen- like to resolve on behalf of myself and interconnected to an electricity grid ator from New Mexico. Senator DASCHLE. This is an amend- and rely upon diesel generators. Mr. BINGAMAN. Mr. President, the ment covering rural and remote com- Electricity prices in Alaska can be Senator from Missouri is in the Cham- munities. My understanding is, it is stunningly high. For example: the ber and ready to speak on the amend- cleared on both sides. Manley Utility—77 cents per kilowatt ment Senator LEVIN and he are intend- I would ask the majority for any hour; Middle Kuskokwim Electric—61 ing to offer. The floor is open for their comments they may care to make. cents/KWh. But so too can electricity discussion at this point. Mr. BINGAMAN. Mr. President, we prices in other small communities The PRESIDING OFFICER. The Sen- do not object to this amendment. It is across our nation. For example: ator from Missouri. supported on this side. I urge that the Matinicus Plantation Electric in AMENDMENT NO. 2997 TO AMENDMENT NO. 2917 Senate proceed to dispose of the Maine—30 cents/KWh; Bayfield Electric (Purpose: To provide alternative provisions amendment. in Michigan—17 cents/KWh; New Hamp- to better encourage increased use of alter- Mr. MURKOWSKI. Mr. President, I shire Electric—15 cents/KWh; Fishers native fueled and hybrid vehicles.) urge adoption of the amendment. Island in New York—23 cents/KWh. Mr. BOND. Mr. President, I appre- The PRESIDING OFFICER. Without Compare these prices to the national ciate the courtesy of the managers of objection, the clerk will report the average of around 7 cents per kilowatt the bill. Senator LEVIN will be in the amendment. hour—and you can see the problem we Chamber shortly, but I thought I would The bill clerk read as follows: need to address. go ahead and make some remarks prior The Senator from Alaska, [Mr. MUR- We just have to do better if we are to to the offering of this amendment, KOWSKI], for himself and Mr. DASCHLE, pro- bring our rural communities into the which I think is a very significant one. poses an amendment numbered 2996. 21st century—to enjoy the fruits of eco- There are many important issues in Mr. MURKOWSKI. Mr. President, I nomic growth—to have safe drinking an energy bill, but what happens to our ask unanimous consent reading of the water—to have affordable energy. automobile economy, what happens to amendment be dispensed with. How will this amendment address the workers, what happens to the peo- The PRESIDING OFFICER. Without these problems? ple who buy them, what happens to the objection, it is so ordered. First, it authorizes $100 million per people on the highways should be a (The amendment is printed in today’s year for block grants to communities very important consideration. I think when you talk about energy RECORD under ‘‘Amendments Sub- served by utilities who have 10,000 or and fuel economy standards, the im- mitted.’’) fewer customers who pay more than 150 pact on jobs and safety need to be at Mr. MURKOWSKI. Mr. President, the percent of the national average retail the top of anyone’s list. That is why I amendment I am offering on behalf of price for electricity. These small com- am pleased to join my colleague from myself and Senator DASCHLE estab- munities may use the grants for infra- Michigan, Senator LEVIN, in crafting a lishes the Rural and Remote Commu- structure improvement including commonsense amendment to the en- nity Fairness Act. This amendment ad- weatherization; modernizing their elec- ergy bill that will increase passenger dresses serious electricity and infra- tric system; and assuring safe drinking car and light truck efficiency while structure concerns of rural and remote water and proper waste water disposal. protecting jobs, highway safety, and communities. Of particular interest to Second, it authorizes electrification consumer choice. the amendment’s cosponsor, Senator grants of $20 million per year to small, Before we get into the details of the DASCHLE, are the provisions that ad- high-cost communities. These grants amendment—and we will be getting dress the concerns of rural and remote can be used to increase energy effi- into lots of details, probably more than communities that suffer from high out- ciency, lower electricity rates, or pro- anybody wants to know about cor- migration. We have well-established vide or modernize electric facilities. porate average fuel economy—let me programs for urban areas. And I sup- Third, it addresses the problem of just take a moment to review the state port them. high electricity prices in Alaska—a of our economy. These programs were established to problem that will diminish as new, effi- A few weeks ago, I was disappointed help resolve the very real problems cient electric generation can be in- that the Senate had stalled out on an found in this Nation’s cities. But our stalled. economic stimulus package. We have rural and remote communities experi- Fourth, it addresses the very real been in a recession for months, and al- ence equally real problems—and they problems of communities that have a though there are signs of a recovery, are not addressed by existing urban high rate of out-migration. It provides there are still many Americans with- programs. They have been left out. Not affordable housing and community de- out jobs. only are these communities generally velopment assistance for rural areas Of course, as you know, we did pass a ineligible for the existing programs— with excessively high rates of out- smaller bill to increase the time of their unique challenges require a dif- migration and low per-capita income payment for unemployment compensa- ferent focus and approach. levels. This is a very significant prob- tion that did have a portion of the The biggest single challenge facing lem for Senator DASCHLE’s State of stimulus package in it. small rural communities is the expense South Dakota. Now, what would be the link between of establishing a modern infrastruc- This amendment makes a significant higher fuel economy standards and eco- ture. The existence of a modern infra- step toward resolving the critical so- nomic recovery and stimulus and jobs? structure is necessary for a safe envi- cial, economic and environmental I will tell you.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1746 CONGRESSIONAL RECORD — SENATE March 12, 2002 I have listened to the car manufac- I recognize there are competing views the path towards the most efficient, ec- turers, the working men and women in on this subject. Some of my colleagues onomical, and environmentally friend- the unions who build the cars, and the prefer to listen to the arguments put ly standards, rather than by politicians other impacted groups, and the signifi- forth by those who have never built a choosing some political number out of cantly higher CAFE standard, or the vehicle, never visited a plant, or don’t the air. We could get in a bidding war, miles per gallon, which will be required even have an elementary under- but we are bidding on something we for vehicles that are included in Sen- standing of how a car works. know nothing about—how efficient can ator DASCHLE’s energy bill that he cre- I prefer to listen to those who are ac- engines be made. ated, without committee action, has a tually engaged in the business of mak- Under the Levin-Bond amendment, very real likelihood of throwing thou- ing cars, of designing cars, servicing the experts at the National Highway sands of Americans out of work, in- cars, selling cars and trucks. They tell Transportation Safety Administration cluding many of the 221,000 auto work- me one consistent message: The CAFE are directed to refer to sound science in ers in Missouri. provision is a job killer, a threat to the promulgating an appropriate and fea- That is because the only way for car safety of our friends and families and a sible increase. Think of that. This companies to meet the unrealistic mandated market that eliminates con- would be historic, if this body said we numbers in the underlying amendment sumer choice. For those who say, too are going to use sound science on a is to cut back significantly on making bad, we must force Detroit to build technological issue before us. Senator the light trucks, the minivans, and the more fuel-efficient cars and trucks, do LEVIN and I believe the time has come. SUVs that the American consumers you know that under CAFE it doesn’t This amendment will strengthen the want, that the people of my State and matter what the companies manufac- regulatory process to ensure that the the people of the other States want—to ture and build? It is calculated based miles per gallon or CAFE levels are ac- carry their children around safely and on what the consumer buys. curate and reflect the needs of con- conveniently, to do their business. If There are over 50 of these high econ- sumers, the technology development, they have jobs in one of the trades, omy models in the showrooms across without undo consequences for safety they need minivans and compartment America today. But guess what. They and jobs. trucks and others to carry their goods. represent less than 2 percent of total Ultimately, I do believe science, not If they are farmers, they need pickup sales. Americans don’t want them. You politics, should drive the deliberations trucks to take care of their livestock can lead a horse to water; you can’t on the CAFE or miles-per-gallon stand- and to haul equipment and feed. make him drink. You can lead the ards. I would be most interested to see I know some in this Chamber believe American consumer to a whole range of what hard data and solid science our our fellow Americans cannot be trusted fancy, lightweight, long-distance auto- colleagues who have pushed for this 35- to make the right choice when pur- mobiles, but you can’t make them buy mile-an-hour CAFE standard say justi- chasing a vehicle. But when it comes them. fies it, the standard in the bill. I am down to choosing between the con- Meanwhile, consumers from families, waiting to see what scientist thinks sumer and the Government as to who is soccer moms, farmers, people with there is a technology to meet it. I don’t best to make a choice, I will side with teenagers, people with soccer teams, believe I would hold my breath because the consumer every time. I don’t think it exists. I don’t pretend to know what is best they want the minivans. A constituent of mine, Laura Baxendale in Ballwin, This is, unfortunately, a political for each of the 15 million Americans number pulled out of thin air. Even who will be purchasing a new vehicle MO, asked: Senator, our mini-van is used to transport worse, it is a number that could have this year and the ones next year or in deadly consequences for American the years after. Those who want higher two soccer teams, equipment and seven play- ers, how would this be possible in a smaller drivers and passengers. I have read the Government CAFE or miles-per-gallon vehicle? 2001 National Academy of Sciences re- standards always claim to have the I have to tell Ms. Baxendale, the bad port on the CAFE standard. Let me best interests of the consumer in mind news is they would have to have a share with you a key finding about and always promise that the last thing string of golf carts. You can see the safety and higher standards. they want to do is hurt the car manu- golf carts going down the highway to This is a report in USA Today. It facturers. Well, they have missed the soccer practice, maybe two kids in says: mark by a mile with language that each golf cart. It is not a very safe or The fatality statistics show that 46,000 peo- ended up in the bill before us today. ple have died because of a 1970s-era push for Proponents portray this CAFE provi- efficient way to transport. Here is a quote from Jeffrey Byrne, greater fuel efficiency that has led to small- sion, authored by Senator KERRY and er cars. of Byrne Farm in Chesterfield, MO: others, as reasonable and necessary. I The National Academy of Sciences As a farmer I do not purchase pickup have other words in mind to describe say: it. It is antisafety, anticonsumer and trucks because of their fuel economy, I purchase them for their practicality. In summary, the majority of that com- antijob. He buys them because he needs them. mittee finds that the downsizing and weight I also have the numbers to consider reduction that occurred in the late 1970s and during this debate. How about 6.6 mil- He is taking care of his livestock. Did in early 1980s most likely produced between lion. That is the number of Americans you ever try to put a load of hay in the 1,300 and 2,600 crash fatalities and 13,000 to employed in direct or spin-off jobs re- back of a golf cart? It doesn’t make a 26,000 serious injuries in 1993. lated to the automotive industry. In very big delivery vehicle. They estimate that 2,000 people were fact, every State in America is an auto Under the new CAFE numbers, the killed in 1993. I fear that has been rep- State. We all know that Michigan, In- production of these popular vehicles licated every year since. It goes on to dian, Missouri, and Ohio are big manu- would need to be curtailed. I don’t say: facturing States. But even smaller want to tell a mom and dad in my If an increase in fuel economy is effected States such as Nebraska, New Hamp- home State they can’t get the SUV by a system that encourages either shire, and Delaware have suppliers and they want because Congress decided downweighting or the production and sale of other industries where success and that would be a bad choice. I don’t more small cars, some additional traffic fa- business profitability is directly re- think that is a sound way to set public talities would be expected. lated to the large car assembly plants policy. After hearing from assembly That National Academy of Sciences in the Nation. line workers, farmers, auto dealers, report offers all of us clear guidance As we struggle to get our economy and others directly impacted by Gov- and expert scientific analysis as we de- moving again, we ought to be devel- ernment CAFE standards, I fully be- bate fuel economy levels. I would also oping proposals that will increase the lieve the appropriate fuel economy point out that the NAS panel was ex- number of jobs. Unfortunately, the un- standards are best decided by experts tremely careful to caution its readers derlying miles-per-gallon standard in within the Department of Transpor- that its fuel economy targets were not this bill by Senator DASCHLE does just tation who have the technology and recommended CAFE goals because they the opposite. It must be removed. It the scientific know-how to determine did not weigh considerations such as must be replaced. what is feasible to help lead us down employment, affordability, and safety.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1747 These are the quotes from the Na- Government purchases are a way of ad- opment programs that we would em- tional Academy of Sciences that I have vancing the way of fuel economy. The phasize. On diesel research, we would just given you. I will leave it up so my Presiding Officer is a member of the coordinate with the Secretary of En- colleagues can read it. I will have a Armed Services Committee and may ergy on an accelerated R&D program copy of the report on the floor. I am remember that last year in our defense to improve diesel combustion. We sure everybody will be as fascinated as authorization bill we actually put in a would have a fuel cell demonstration I have been to read it because it con- requirement that the Defense Depart- program between the Department of tains important information. ment, starting in the year 2005, pur- Defense and the Department of Energy. Opponents of our amendment may chase hybrid vehicles. What this bill Those, briefly, are the things we question how effective the experts at does is it applies the same principle to would do to create positive incentives, NHTSA will be in leading the new fuel the balance of our Federal Government market pull, and partnerships between economy standards. Some might prefer so that we use the purchasing power, the Federal Government and the pri- that Congress set a political number as the pulling power, the positive power of vate sector, to try to get us to a great- we find in the current energy bill. Our Government purchases to provide a er level of fuel economy. amendment takes an approach that, market for advanced technology vehi- Our third policy is based on our belief rather than politics and guesswork, cles or hybrids. that there are a host of factors that hard science and technological feasi- We also have a greater emphasis on should be considered before the CAFE bility should be the prime consider- joint research and development. The requirement is adopted. We think there ation in the development of any new administration has proposed an ap- should be a new CAFE requirement. CAFE standards. proach, which is a very useful ap- Our provision calls upon the Depart- I will ask that my colleague from proach, built on what was called the ment of Transportation to increase— Michigan, who is going to describe this ‘‘partnership for a new generation of that is our word—standards for cars amendment, give you the details. I will vehicles,’’ which the last administra- and light trucks based on the consider- just say that it is vitally important tion put into place, which is based on ation of a number of factors. Then we that we strike the people killing, jobs partnerships between the Federal Gov- list the factors that we hope the De- killing, market killing, CAFE or miles- ernment and the private sector in try- partment of Transportation will con- per-gallon provisions currently in S. ing to develop new technology. The ad- sider. They include technological feasi- 517 because they would only hurt the ministration now has talked about bility. That is the only one that is in consumer and do very little for fuel moving with greater emphasis on fuel the bill before us. The bill says it would take the most economy. Let’s save jobs and save cells—they call it the ‘‘freedom car.’’ advanced technologies, assume they American lives by voting yes on the We would add about 40 percent addi- will be incorporated into vehicles, and Levin-Bond amendment. tional funds to advanced technology re- then do not consider, however, the I yield the floor. search and development between the other factors that we say logically The PRESIDING OFFICER. The Sen- private sector and the Federal Govern- must be considered before a new CAFE ator from Michigan is recognized. ment. That is the second thing we do in standard is adopted, such as cost-effec- Mr. LEVIN. Mr. President, first let terms of positive incentives to try to tive Government motor vehicle stand- me thank my good friend from Mis- achieve greater fuel economy. souri for the tremendous effort he has A third thing that we would do, we ards on fuel economy. For instance, put into fashioning this bipartisan ap- would do it in a separate bill, so that what is the impact on our tailpipe proach to increasing fuel economy. He this bill would not be subject to a point emission standards? The need to conserve energy; that is has played an indispensable role. I am of order, or subject to a slip that the obvious. We all want to do that. That very much appreciative of that and, of House of Representatives might be able is a goal. The desirability of reducing course, his presentation today. to file against it. We do something on U.S. dependence on foreign oil, clearly, This bipartisan approach is an alter- the tax credit side. We would signifi- that is one of our goals. What is the ef- native to the language in the sub- cantly enhance the tax credits—tax de- fect on motor vehicle safety? As the stitute that is pending, the language ductions—that are provided for both Senator from Missouri pointed out, the which I will refer to as the Kerry-Hol- advanced technologies and for new study of the National Academy of lings language. Our amendment is technologies. In the provision that is Sciences shows that there is a loss of aimed at increasing fuel economy. going to be offered, I believe, which has lives and a significant number of inju- That is No. 1. We want to increase fuel been adopted by the Finance Com- ries which result when you raise the economy. We want to do it in a way mittee, for electric vehicles, we would CAFE standards, as we did some years that also allows the domestic manufac- increase the existing electric vehicle ago. I will get back to the safety issue turing industry in our U.S. economy to tax credit up to a maximum of $6,000 in a moment because it is a factor that thrive as well. We think we can accom- for 6 years, beginning this year going should be considered. That is all we are plish both goals. We don’t think these through 2007. For fuel cell vehicles, we saying. We are saying that it is logical are mutually exclusive goals, incon- would establish a tax credit up to a and rational to have a process where sistent goals, or goals that are in con- maximum of $11,000 for 8 years, begin- other factors beside potential techno- flict with each other, providing we do ning in the year 2004, ending in 2011. logical advances should be considered it right. If we do it wrong, we will have For hybrid vehicles, the separate in setting a new CAFE standard. a very negative effect on the American amendment we will be offering would The adverse effects of increased fuel economy and on manufacturing jobs in establish a tax credit up to a maximum economy standards on the relative America. If we do it wrong, we will not of $5,000 for hybrid vehicles for 6 years, competitiveness of manufacturers, I even benefit the environment the way beginning in 2004. will come back to that issue because we should. I will get into the right way We also would have a greater empha- the CAFE structures had a discrimina- and the wrong way in a few moments. sis on using tax deductions for infra- tory impact on the American auto in- We really have a three-point policy structure equipment and infrastructure dustry with vehicles just as fuel effi- that we are talking about—three poli- for fuels and alternative fuels—for hy- cient, I emphasize. I want to spend cies that we want to emphasize in this drogen. We would take the existing tax some time on that issue in a moment. amendment. First is the need to in- deductions and make them last longer. The American-manufactured vehicles crease fuel economy in our vehicles. We would apply them to a greater are just as fuel efficient, and they are That is policy No. 1. range of equipment, and we would also put in a negative position, vis-a-vis the No. 2, we put a much greater empha- establish a tax credit of up to $30,000 imports, because of the CAFE struc- sis on incentives to achieve that goal, for the cost of installation of alter- ture—the fact that it looks at a positive ways of achieving that goal. native fuel and hydrogen distribution fleetwide average rather than looking We do it in a number of ways in this equipment, beginning in 2002 and end- at class of vehicles compared to class bill. We have a requirement here that ing in 2007. of vehicles. the Government purchase a large num- There are—in addition to what I have Instead of saying the same size vehi- ber of advanced technology vehicles. just outlined—some research and devel- cle will be subject to the same CAFE

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1748 CONGRESSIONAL RECORD — SENATE March 12, 2002 standard, the same mileage standard, ess. It can then be vetoed, and under Take a look, for instance, at the it lumps together all vehicles of a man- our bill, if there is no report within large SUVs. Ford Expedition gets 15 ufacturer, and the results are, in my that fixed period of time, it would then miles per gallon. GMC Yukon gets 15 judgment, bizarre and costs huge num- be in order, under the expedited proc- miles per gallon. Dodge Durango gets bers of American jobs without the ben- ess, to offer alternatives to it. 15 miles per gallon. The Toyota Land efit to the environment. Those are some of the provisions of Cruiser gets 14 miles per gallon. If peo- We would ask the Department of our alternative. We think it is a much ple want to choose a Toyota, that is Transportation, during this period of more rational process. It takes advan- their business, but it seems to me we time that we give to them, to consider tage of a rulemaking opportunity should not be creating a system which rulemaking would also take a look at where various criteria can be consid- pushes people to imports because Toy- the effect on U.S. employment, the ef- ered, where safety factors can be con- ota can produce hundreds of thousands fect on near-term expenditures that are sidered—and I want to get to safety of additional Land Cruisers without required to meet increased fuel econ- factors in a moment—where we can any negative effect in terms of their omy standards on the resources avail- look at the discriminatory impact on bumping up against the CAFE limit able to develop advanced technology. various manufacturers that are put in when the Land Cruiser is not as fuel ef- What is the relationship between re- different positions, put in worse posi- ficient as the American vehicles. quiring short-term gains on the need to tions. Even though their cars are equal Midsize SUVs: Ford Explorer, 17 make leap-ahead technologies avail- or better in terms of fuel efficiency, miles; Chevrolet Trail Blazer, 18 miles; able to us earlier, to make the ad- they are put in a negative position vis- Jeep Liberty, 17 miles; Toyota vanced hybrids available earlier—and I a-vis their competition. 4Runner, 17 miles—equal or a little bet- emphasize advanced hybrids available What is truly bizarre, it seems to me, ter fuel efficient in case of the Trail earlier—to make the fuel cells avail- is it is the American manufacturers Blazer. It is the same with the small able to us in 10 years instead of 20 that are put in that discriminatory po- SUV, the large pickup, and the small years? What is the impact on taking sition, that negative position, not pickup. arbitrary numbers requiring the auto based on their efficiency, because we We can go through these one by one, industry year by year to meet those are going to go through that in a but in each case, the U.S. vehicles are standards on what our ultimate goal I minute, but based on the way this either as fuel efficient or slightly hope will be, which is huge reductions CAFE provision is structured. It puts more. One can also pick cases where an in the use of oil by the advanced tech- American jobs at risk with no benefit imported vehicle may be 1 mile per gal- nologies called advanced hybrids and to the environment. It does not help lon or somewhat more efficient. Those fuel cells? our environment or the air to push cases will exist if one looks at it Another thing we would require is somebody into an equally efficient or enough. that the National Research Council, less efficient imported vehicle than a If we look at the entire picture class the part of the National Academy of domestic vehicle that is equally effi- by class, American vehicles are as fuel Sciences that reported in a report enti- cient or more efficient. We are not efficient as imported vehicles, or in the tled ‘‘Effectiveness and Impact of Cor- doing anything for the air, and we are cases I gave—and in many other porate Average Fuel Economy Stand- costing American jobs. cases—more fuel efficient. ards,’’ which was issued in January of That is the effect of the CAFE struc- We have a situation called CAFE this year—we would require that report ture. It seems to me, at a minimum, we where foreign manufacturers are rel- be considered. should ask the Department of Trans- atively unconstrained by CAFE be- I am going to give some quotations, portation to include in their rule- cause of a fleet mix, not because they as the good Senator from Missouri did, making review what are the adverse ef- are more fuel efficient class by class. from that report because we think that fects of increased fuel economy stand- Nothing is gained for the environ- report is an important report. ards on the relative competitiveness of ment if an imported SUV is bought in- The time line we would give the De- manufacturers. stead of an American-made SUV where partment of Transportation is 15 I wish to show a few charts. the American SUV is at least as fuel ef- months to complete the rulemaking for This is a chart which I have produced ficient as the foreign SUV. Nothing is light trucks, and 24 months to com- which compares, class by class, some gained for the air, but a lot of Amer- plete their rulemaking for passenger American-made and imported vehicles. ican jobs are lost. cars. If they do not complete it, it This is not a chart which was produced If we look at the opportunity for just would be in order, under an expedited by the auto industry. It was produced one manufacturer—let me back up 1 process, for Congress to then take up by me. It obviously does not include minute. alternatives which could be considered. every vehicle, but we believe it makes This is the impact of a 36-mile-per- It at least puts in place a rational sys- an important point, which is that gallon combined car/truck standard on tem of looking at many criteria which American vehicles, class by class, are five manufacturers. Honda only has to are relevant to the question of where at least as fuel efficient as foreign ve- increase theirs by 20 percent; Toyota, the new standards for fuel economy hicles. 36 percent; GM, 51 percent; Ford, 56 per- ought to be instead of arbitrarily pick- This chart shows trucks, pickups, cent; DaimlerChrysler, 59 percent. ing a number out of the air, having SUVs, and the minivan. Those are the Again, I emphasize, because this is staff, for instance—apparently we are three vehicles we studied. the key point, those disparate impacts told staff is considering some num- A similar chart can be made for pas- have nothing to do with the relative bers—and come up with a conclusion senger vehicles. We did not do that be- fuel efficiencies of the vehicles of the that we could impose a 36-mile-per-gal- cause that has not been the focus, but same class. It has to do with the fleet lon or a 34-mile-per gallon requirement we are perfectly happy to compare mix. on the entire fleet, lumping together numbers on passenger vehicles pro- What we have put in place—I guess trucks and passenger cars. vided we are comparing apples and ap- the word ‘‘bizarre’’ is as close as I can Mr. KERRY. Will the Senator yield ples, providing we are comparing class- come to it, because this does not do for a question? es of vehicles of the same relative size. anything for the environment to push Mr. LEVIN. I will be happy to yield We can also look at passenger vehi- people into an imported vehicle which at the end of my remarks. I thank the cles, and we can reach basically the is no more fuel efficient than a domes- Senator. same conclusion. The problem is, if you tic. Instead of doing that, we should have lump all the different classes of vehi- If people want to buy an imported ve- a rational rulemaking process that is cles together, at that point you come hicle, that is their judgment, that is put in place for a fixed period of time up with a system which has a discrimi- their business, but for us to have a that then makes a decision on what the natory impact on some manufacturers, structure which pushes people in that new standards should be. That would and it is the American manufacturers direction because we constrain the be subject to legislative review under that carry the brunt of that disparate number of larger vehicles which the existing law, under an expedited proc- impact. American manufacturers can produce,

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1749 although they are equally efficient and we want to try to factor in what is the the result of CAFE. This is the addi- many times more efficient in terms of cost? tional sales of large pickups and SUVs fuel than the imports, it seems to me I urge people to take a look at the which would be allowed under CAFE does not do anything for the environ- National Academy of Sciences tables under today’s standard because of the ment and it costs American jobs. That when it comes to costs. They are com- way it is based. is something we should avoid. We plicated, they are technical, but they GM, again whose vehicles are equally ought to take the time to avoid it. are worth looking at. fuel efficient class by class with their We ought to have a regulatory proc- Now, the National Academy does not imported competitors: Toyota and ess where people can look at the dis- conclude what a new CAFE number Honda, zero. They are up to the limit. parate impacts on various manufactur- should be. We should set the policy, it Because of the fleet mix, Toyota can ers, as well as all of the other criteria says, and we are. In this amendment, sell 312,000 additional, Honda 324,000 ad- which ought to be used, such as vehicle we are setting the policy. Our policy is, ditional. If one adds credits which have safety. we want to rely more on positive incen- been built up over the years to that, it I will read a couple of statements tives. Our policy is, we want to in- reaches, I believe, a million. That is from the National Academy of Sciences crease fuel economy. Our policy is, we the CAFE system. study relative to safety. Page 27: The want to look at a lot of provisions Should somebody look at that sys- downsizing and downweighting of the which are relevant to the question of tem? Is that a system which is worth vehicle fleet that occurred during the what the new CAFE numbers should be; looking at again to see whether or not 1970s and early 1980s still appear to not just the one factor which the pro- in fact it has these kinds of disparate have imposed a substantial safety pen- ponents of the language in the sub- impacts? alty in terms of lost lives and addi- stitute rely on, which is potential tech- The National Academy acknowledges tional injuries. Page 70: There would nological feasibilities, but other fac- that the current CAFE standards fail have been between 1,300 and 2,600 fewer tors: costs, safety, adverse effects on the test of manufacturers of equivalent crash deaths in 1993. That is the year relative competitiveness of manufac- vehicles receiving equal treatment. they studied. They picked the year, not turer, effect on U.S. employment and That ought to be enough, it seems to me. They picked the year 1993 to look the National Research Council’s entire me, to say we should take another look at the impact of CAFE on safety. The report. at the CAFE structure. Someone ought National Academy of Sciences said— I talked about the disparate effects. to take another look at it. There ought not the American auto industry, not The amendment I have made ref- to be a regulatory process where people the insurance industry but the Na- erence to I would now send to the desk can come in, make arguments, where tional Academy of Sciences—there on behalf of myself, Senators BOND, people who have the responsibility to would have been between 1,300 and 2,600 STABENOW, and MIKULSKI. look at all the criteria weigh the cri- fewer crash deaths in 1993 had the aver- The PRESIDING OFFICER. Without teria, publish a proposed rule for com- age weight and size of the light-duty objection, the pending amendment is ment, and get comment on it. That is motor vehicle fleet in that year been set aside, and the clerk will report. not what is proposed in the substitute. that of the mid-1970s. The legislative clerk read as follows: It is proposed we get an arbitrary num- Similarly, it was estimated there The Senator from Michigan [Mr. LEVIN], ber and say that is what it will be be- would have been 13,000 to 26,000 fewer for himself, Mr. BOND, Ms. STABENOW, and cause some people think that is doable. moderate-to-critical injuries. These are Ms. MIKULSKI, proposes an amendment num- Some people here, apparently, and deaths and injuries that would have bered 2997 to amendment No. 2917. some of the outside folks they rely on been prevented in larger, heavier vehi- Mr. LEVIN. Mr. President, I ask think that is doable. cles given their improvements in vehi- unanimous consent that the reading of That is not a rulemaking process, it cle occupant protection and the travel the amendment be dispensed with. seems to me, that looks at all the cri- environment that occurred during the The PRESIDING OFFICER. Without teria that need to be looked at when we intervening years. objection, it is so ordered. have something as important as this is In other words—and this is the bot- (The text of the amendment is print- for the economy of this country. tom line for me—these deaths and inju- ed in today’s RECORD under ‘‘Amend- I will be happy to answer questions of ries were one of the painful tradeoffs ments Submitted.’’) my friend from Massachusetts if they that resulted from downweighting and Mr. LEVIN. The National Academy are still on his mind after I close. downsizing and the resultant improved of Sciences report also makes some ref- In conclusion, the stakes we have are fuel economy. Painful tradeoffs. erences to these disparate impacts on huge for the environment and for the Should somebody consider that? Is it different manufacturers of CAFE, and economy. I have been sensitive to the worth considering between 1,300 and this is what they say on page 102: That environment all my life, coming from a 2,600 deaths in 1993? That is the typical one concept of equity among manufac- State where the environment is abso- year they picked. Should that not be at turers requires equal treatment of lutely critical, where water and air least a factor on the scale? equivalent vehicles made by different mean everything. We are in the middle It is not on the scale in the language manufacturers. of the greatest batch of fresh water in that is in the substitute before us. We Equal treatment of equivalent vehi- the world, the Great Lakes. We care want to put it on that scale. There is cles made by different manufacturers deeply about it. We are a State where no one of these factors which by itself seems pretty reasonable to me. This is environment is high on everybody’s ought to result in any particular out- what they say about that: The current list. come. All of these factors ought to be CAFE standards fail this test. If one I will take a back seat—since we are weighed, but that is not what is in the manufacturer was positioned in the talking about vehicles—to nobody substitute. In the substitute is a num- market selling many large passenger when it comes to my belief we should ber, arbitrarily selected, which in the cars, thereby was just meeting the protect the environment. I believe we judgment of some—and we do not know CAFE standard, adding a 22-mile-per- can protect the environment in a way how, we do not have a committee re- gallon car would result in a financial which does not negatively impact our port to help us through that mine field. penalty or would require significant economy if we will do it the right way, All we know is we have a number and improvements of fuel economy for the if we will go at this the right way, with then we are told that is reasonable; remainder of the passenger cars. greater emphasis on positive incen- they can do that. Then they also say on page 69: A sin- tives, but greater caution, before we Look, they can produce vehicles that gle standard that did not differentiate pick a number which we then impose get 40 miles per gallon. Sure, they can. between cars and trucks would be par- on an industry, particularly when we They can produce electric vehicles ticularly difficult to accommodate. On know from the NAS study that the which even do better than that. The page 15: For foreign manufacturers, the CAFE system has not been equitable, question is, Are there people who want standards appear to have served more that it treats equivalent vehicles of to buy them? That is always the ques- as a floor towards which their fuel different manufacturers in an equal tion. In trying to determine that, do economy descended in the 1990s. This is way.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1750 CONGRESSIONAL RECORD — SENATE March 12, 2002 We can fix that—it will take a little pound for pound, as my colleague from CAFE average was for model year 2001? time—if we will turn this over, with a Michigan likes to say, American cars It was 24.2, the same as model year fixed calendar and schedule, to a regu- are as fuel efficient as their foreign 2000. GM improved the fuel economy of latory body which has the responsi- competitors. eight vehicles, and their CAFE num- bility to do this, and then watch them This is true even for the biggest, bers stayed the same. How does a sys- go through a process, issue a regula- heaviest American SUV. This chart tem that does not reflect actual im- tion, publish that regulation, either shows the fuel economy of the largest provements in vehicle fuel economy adopt it or veto it under existing law, SUV models, all of which have larger, and penalizes automakers for doing the and if they do not comply with the cal- more powerful engines. All of the Big right thing make any sense? endar we set for them, we then have an Three SUVs have better fuel economy The proposal of Senator KERRY and expedited process here to consider al- than the Toyota Land Cruiser Wagon. others builds upon this flawed system ternatives, including those offered by The DaimlerChrysler Durango, Ford and further compounds the anti- my good friend from Massachusetts Expedition, and GM K1500 Suburban competitive and discriminatory impact and my friend from South Carolina. have a city/highway fuel economy of 15 on our Big Three automakers. Cur- I yield the floor. miles per gallon, which is 1 mile per rently, the Big Three automakers The PRESIDING OFFICER (Mr. CAR- gallon more fuel efficient than the make a higher proportion of trucks PER). The Senator from Michigan. Toyota Land Cruiser Wagon. than cars. Because of their product Ms. STABENOW. Mr. President, I The question becomes, with all of mix, this CAFE proposal creates impos- rise this afternoon to strongly support these more fuel efficient vehicles in sible fuel economy targets for U.S. the Levin-Bond-Stabenow-Mikulski their fleets, why does the Big Three automakers without really affecting amendment. have a lower CAFE number than its the foreign competitors, which is a First, I thank my colleague from foreign competitors? It is because the major concern for me. Michigan for all his leadership and CAFE system does not reflect the real DaimlerChrysler, for example, has a hard work on this proposal which I be- fuel economy of the cars and trucks in fleet mix of approximately 65 percent lieve strikes a balance to be able to an automaker’s fleet; instead it really light trucks and 35 percent passenger bring together the common goals of in- reflects what vehicles consumer pur- cars. Assuming we close the so-called creasing fuel efficiency and also mak- chase. The CAFE number does not re- SUV loophole and DaimlerChrysler’s ing sure we are protecting jobs and flect the fuel economy improvements light truck fleet achieved 28 miles per supporting the growth in the American of each vehicle; instead CAFE rep- gallon, its passenger car fleet would economy. I support and thank my resents the averaged fuel economy of have to average over 76 miles per gal- friend from Missouri for his hard work an automaker’s entire fleet which de- lon to achieve the 36-mile-per-gallon and leadership on this issue as well. pends on how many of each model con- fleetwide average. I begin by saying that this debate is sumers actually buy. Therefore, an That is the problem with CAFE. not about whether or not we should in- automaker can increase the fuel effi- However, Honda, which has a fleet mix crease vehicle fuel efficiency. I agree ciency of all of their vehicles but still of approximately 20 percent light with Senator KERRY about the impor- have a declining CAFE average depend- trucks and 80 percent passenger cars, tance of creating more fuel efficient ing on what models sell the most. would only have to achieve a passenger cars and SUVs, not only because it For example, over the past 3 years car fleet average of 38 miles per gallon would decrease our oil consumption GM has introduced new truck and SUV to achieve that same 36-mile-per-gallon and our dependence on foreign oil, but models that are more fuel efficient fleetwide average. because of the important benefits it than the models they replaced. They There is something wrong with this has our environment. What this debate are introducing more fuel-efficient picture. Furthermore, this CAFE pro- is really about is what is the best way trucks and SUV models than the mod- posal will not guarantee a more fuel-ef- to increase fuel efficiency without hav- els they replaced. But GM’s light truck ficient SUV. But it will guarantee that ing negatively affected U.S. manufac- CAFE number has either remained flat the SUV will be made by Honda or turers and American jobs. or actually gone down. Toyoto instead of an American-made Before I discuss the Kerry-McCain This is the bizarre situation that auto company. CAFE proposal, I address the myth Senator LEVIN talked about. That I can tell you as someone coming that the Big Three’s vehicles are not as doesn’t make any sense. But in 2000, from the great State of Michigan that fuel efficient as their foreign competi- GM introduced reengineered full-size this is not something the people of my tors. When CAFE was first enacted as a SUVs—the Chevrolet Tahoe and the great State want to see happen, nor part of the 1975 Energy and Policy Con- GMC Yukon—which have an increased should we want it to happen nation- servation Act over 25 years ago, the fuel economy of 4 percent over the ally. The impact is serious for us in Big Three were criticized for lagging models they replaced. The more fuel ef- terms of jobs and the economy. Foreign behind their foreign competitors by ficient 2000 models sold were 190,000 manufacturers already control a large making bigger, less fuel efficient cars. more than the previous models, but the share of U.S. car sales. Trucks and A lot has changed since the CAFE sys- GM’s light truck CAFE number actu- SUVs are the last domestic stronghold, tem was first implemented and this is ally decreased because of increased but the same shift to foreign manufac- not your mother’s Big Three. When you sales of these more fuel-efficient SUVs. turers is already evident in the truck compare foreign and American vehicles That doesn’t make any sense. That is market. that are in the same weight and class, why we are objecting to the current This CAFE proposal places an anti- the American vehicles are as fuel effi- process for CAFE. competitive cap on how many trucks cient, and often more fuel efficient Let me talk about another chart. and SUV’s the Big Three can produce, than their foreign counterparts. In model year 2000, GM’s combined but leaves their foreign competitors For example, the Toyota Camry, one car and truck CAFE average was 24.2 unencumbered to expand into the truck of the most popular cars in Toyota’s miles per gallon. For model year 2001, and SUV market. Competitors with fleet, is less fuel efficient than all of its GM made fuel economy improvements fewer sales in the truck and SUV mar- Big Three competitor passenger cars to eight different vehicles in their fleet ket would be able to increase their we compare. Both the Ford Taurus and —the Ventura, the Park Avenue, the sales in this area resulting in a trans- the DaimlerChrysler Concord have a Bonneville, the Impala, the Grand Prix, fer of market share, without a net gain city/highway fuel economy of 23 miles the DeVille, and the Aurora. For all of in fuel economy. For example, Toyota per gallon, which is 1 mile per gallon these models, the fuel efficiency num- can produce up to 250,000 more Tundras more fuel efficient than the Toyota bers went up. today, without increasing any vehicle Camry. The GM Impala has a city/high- Some of the vehicles had a 17-per- fuel efficiency and without going below way fuel economy of 25 miles per gal- cent, 19-percent, or 6-percent improve- the currently mandated CAFE require- lon—it is 2 miles per gallon more fuel ment in fuel economy over the models ments. Imagine how many more Tun- efficient then the Toyota Camry. This of the previous years. But do you know dras Toyota could build under this is true across the Big Three’s fleets— what GM’s combined car and truck CAFE proposal while our American

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1751 automakers are restrained from com- Lansing, MI. That plant was closed be- United States and creates over 6.6 mil- peting in that important market. cause they weren’t getting enough vol- lion jobs directly or indirectly. These foreign competitors also have ume in production. People weren’t buy- Our amendment—the Levin-Bond- more CAFE credits built up from pre- ing it. We need to find ways to make Stabenow-Mikulski amendment—in- vious model years due to their mainly that more attractive, which is what creases vehicle fuel efficiency without smaller vehicle mix. By applying these our proposal does by helping with in- placing anticompetitive restrictions on credits to future model years, foreign frastructure, bringing the price down, our U.S. automakers. This amendment automakers would be able to further and creating more volume. helps decrease our fuel consumption fill the demand for larger vehicles that Our American automakers will be and dependence on foreign oil in the would be left unmet by the restraints forced, unfortunately, under the under- short term by increasing CAFE for placed on our American automakers. lying proposal, to respond in a number light trucks and cars. But, most impor- For example, at the end of model year of undesirable ways to meet this unre- tantly, the amendment looks to the fu- 2001, Toyota has about $140 million in alistic overall CAFE number, all of ture, which is something we all want to CAFE credits. This would allow Toyota which make them less competitive in do, and provides the market incentives to produce up to 1.1 million Tundras at the car and light truck market. and investments in developing tech- current CAFE standards before ex- First, they will be forced to cut vehi- nologies such as hybrids, fuel cells, and hausting its built-up credits. cles from their fleets or place a produc- clean diesel vehicles that will really The Kerry-McCain proposal also does tion cap on certain cars, which will re- not address the pick-up truck problem revolutionize the American automobile sult in more layoffs and plant closures, industry. in any meaningful way. The Kerry- I fear. McCain proposal would exempt heavy For example, if GM addresses the The amendment directs the National duty pick-up trucks weighing between fairly immediate 3-mile-per-gallon in- Highway Traffic Safety Administration 8,500–10,000 pounds, but that is just a crease in the light truck standard by to complete a rulemaking to increase restatement of current law because simply eliminating its least fuel-effi- fuel efficiency for light trucks within trucks in this weight range are already cient products, seven plants in five the next 15 months and for passenger exempted from CAFE. This proposal States employing 38,000 auto workers cars within the next 24 months, but it fails to address the concerns of farm- and 154,000 auto and supplier jobs would also requires NHTSA to consider the ers, ranchers and other pick-up truck be at risk. And GM’s sales volume in flaws that we have been talking about consumers, since the overwhelming the light truck market would be re- today in the current CAFE system as majority of pick-up trucks would fall duced by over 1 million vehicles. they do this rulemaking. NHTSA would below this 8500 pound limit. Our U.S. automakers also could be examine important issues that have I want to stress that I am not advo- forced to strip their vehicles of fea- been talked about, such as adverse cating that we protect the Big Three tures consumers want, such as engine competitive impacts of CAFE on our from market competition. I am not size and power to meet this high CAFE U.S. automakers, impacts on U.S. em- supporting a freeze on CAFE standards number, giving foreign automakers ployment, technology costs, and nec- because I do not believe the Big Three that will not have to eliminate these essary lead time, the effects of vehicle should avoid producing more fuel effi- features a huge competitive advantage. safety, and the effects on the environ- cient cars and SUVs. Lastly, they could reduce the weight ment before setting a CAFE number, We are not arguing about a freeze. of cars, which will compromise vehicle not after. We are talking about a better way to safety, as has been talked about before, The CAFE proposal in the energy bill do this that moves us forward and that since producing smaller, lightweight puts the cart before the horse, I fear, gets us to where we all want to go in a vehicles that can perform using low- and sets a 36-mile-per-gallon number way that does not penalize the domes- power, fuel-efficient engines is the before having NHTSA have the oppor- tic automakers and cost jobs. most affordable way for automakers to tunity to examine all of these factors. But like a CAFE freeze, this proposal also protects a group from real market meet the CAFE standards. None of We need to let the experts at NHTSA competition and thwarts increases in these options are good for our Amer- do their job. NHTSA is properly fuel efficiency; however, the group that ican automakers or for our consumers. equipped to address the fundamental Placing U.S. automakers at a com- this proposal protects is not the Big changes that have occurred within the petitive disadvantage by penalizing Three, but their foreign competitors industry over the last several years, like Honda and Toyota. their most popular vehicles will lead to and to evaluate our current economic It is also important to remember more layoffs and a weaker U.S. auto in- situation, technology, and capabilities that the 36-miles-per-gallon number in dustry. And we certainly do not need regarding a higher CAFE standard. this at this time or any time. It is ap- this CAFE proposal is not anywhere in In the past, Congress has enacted a parent to all of us debating this issue the National Academy of Science’s re- CAFE freeze preventing NHTSA from that the auto industry is not at its eco- port. Even under the optimistic sce- moving forward with issuing new CAFE nomic strongest right now. Practically narios in the NAS report, which as- regulations. Now that the freeze has every week one of our U.S. automakers sume that consumers are willing to re- expired, we should not interfere with announces another round of layoffs. cover the higher costs of the tech- NHTSA’s ability to do its job effec- Over the past year, our big three auto- nology over a 14-year period instead of tively. a 3-year period and assume ‘‘average’’ makers—GM, Ford, and Congress also needs to help auto- technology costs, only subcompact pas- DaimlerChrysler—have announced al- makers move in the right direction in- senger cars are projected to reach the most 70,000 layoffs and job cuts and 11 stead of pulling them in the wrong di- 36 mpg within the 10–15 year time- plant closures. That is 70,000 in 1 year. rection. Foreign and domestic auto- frame. Under these optimistic 14-year Our domestic automakers have already makers have already invested millions payback and ‘‘average’’ costs projec- been severely weakened by the current of dollars in developing cleaner, better tions, the highest level for any light recession. I fear that the underlying technologies. These investments are truck, which is for small SUVs—is only proposal to raise CAFE standards will 32.6 miles per gallon. This CAFE pro- only exacerbate this problem by plac- starting to pay off for the American posal sets a number that according to ing uncompetitive restrictions on our consumer. the experts at NAS, only a smallest U.S. automakers without effectively For example, DaimlerChrysler will be passenger car could meet! increasing vehicle fuel economy. producing a hybrid electric Dodge Du- This proposal legislates a market ad- In Michigan, over 1 million people rango SUV starting in 2003, which will vantage for foreign automakers, while are either directly or indirectly em- have 20 percent better fuel economy in essence forcing a production cap on ployed by our domestic auto industry. than the conventional Durango, with- our American automakers’ most pop- While the economic impact is particu- out compromising safety or comfort. A ular vehicles. larly devastating in Michigan, this is hybrid electric version of the The EV–I—an electric car—was pro- not just a Michigan issue. The auto in- DaimlerChrysler Dodge Ram pickup duced not 10 minutes from my house in dustry is the largest industry in the truck also will go into production in

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1752 CONGRESSIONAL RECORD — SENATE March 12, 2002 2004. Ford is currently developing a hy- I believe we can do it by applying turers a leg up in the middle of a reces- brid Ford Escape SUV which will be ca- four criteria. These are criteria I know sion. It is arbitrary, and it is also unat- pable of being driven more than 500 the Presiding Officer has helped de- tainable, setting very aggressive stand- miles on a single tank of gas. velop. We need to achieve real savings ards on too short of a time line. And it In addition to these great techno- in oil consumption. We need to pre- would limit consumer choice by effec- logical developments, automakers have serve U.S. jobs. And whatever we do tively capping the sales of light trucks. been working on fuel cell vehicles must be realizable and achievable. There are other ways to achieve fuel which could revolutionize the auto- That means giving companies a reason- conservation. mobile sector within the next 15 years. able lead time to adjust their produc- I want to come back to the whole The CAFE proposal in the energy bill tion, to develop, test, road test—not idea about foreign car companies pro- will force automakers to divert funding laboratory test—and implement new ducing smaller cars and that is what and research away from these impor- technologies. What works well in the their customers buy. There is no doubt tant technological advances and make lab doesn’t always work so great on the that Americans are buying these meeting these incremental CAFE in- beltway. microcars. There is no doubt about it. creases a funding and research priority. We also have to create incentives to They are usually younger or older or That is a major concern of mine. They enable companies to achieve these often a second car in the family. For are moving in the right direction. The goals. Incentives are a favorable tax middle-class families, though, they are underlying Kerry proposal would force policy. I don’t believe the Kerry- not the core car. The core car is an them to change direction to meet some McCain proposal meets those criteria, SUV or a minivan. I will talk about shorter term goals. This CAFE pro- but I do believe the Levin-Bond amend- that in a minute. posal also locks the automakers into a ment really does. When we talk about, again, achieving rigid fuel efficiency plan for the next 10 In terms of the Kerry-McCain lan- those standards, putting everybody and years, setting back the progress they guage, as I understand it, it will re- everything in the same category, quite are making putting these important quire a 50-percent increase in CAFE frankly, it is like putting a bagel in technologies into place. standards to reach 36 miles a gallon by with strawberries, and the strawberries Instead of placing restrictions on the year 2015, enabling the National are lower in calories and the bagel is what our automakers produce, we Highway Transportation Safety Ad- not, and saying, we are going to have should be looking for ways to help ministration to combine car and truck the average of calorie consumption. Do them introduce these better, cleaner fleets into one category. You have to you follow that? Or raspberries. I think technologies. The Levin-Bond amend- listen to that. It would combine car a lot about this amendment—some of it ment includes these incentives, such as and truck fleets into one category— is raspberries. We need to recognize that over the Federal fleet purchase and alternative that means we take apples and oranges past decade the U.S. car manufacturers fuels requirements and a real Federal and say that fruit salad is the same— have struggled to meet CAFE require- creating a single standard for both cars investment in hybrid, clean diesel, and ments across a full line of vehicles in and trucks that would help foreign car fuel cell research and development— both cars and trucks. all the things we know have to happen. manufacturers and penalize U.S. auto- American consumers are really ob- The amendment requires that 10 per- mobile workers for selling vehicles sessed with safety. This is why many of cent of the light-duty trucks in Federal that we Americans are absolutely buy- them are turning to a larger car. The fleets be hybrid vehicles by 2007, and ing. Kerry-McCain amendment does effec- requires the Federal Government to Why would this help foreign car mak- tively cap the sale of light trucks, use alternative fuels in all of their ers? When you look at the fuel mileage since the default level for light trucks dual-fueled vehicles. The amendment or the achievement in mileage, Euro- is not achieved by any light truck on also increases funding for the Freedom pean and Japanese automobile compa- the road today. Car Initiative for fuel cell vehicles by nies in various categories roughly Some people are talking about ex- 40 percent. achieve the same fuel consumption empting the light trucks. I am for that. Finally, the Levin-Bond alternative standards, but foreign manufacturers If there is a pickup truck waiver, I am includes important consumer tax cred- sell many more small cars. They not going to vote for it. But very often its for electric, hybrid, and fuel cell ve- only sell small cars, they sell that is a guy thing, though many hicles, which will be offered in a sepa- microcars, those really little cars that women do drive light trucks. But most rate amendment. These tax incentives look as if they are golf carts on wheels. women are driving minivans and SUVs. will help create and build market de- Then when you include their SUVs and A couple years ago, all we who hold mand for the most efficient hybrid, light trucks, their average fuel effi- elective office were very busy chasing electric, and fuel cell vehicles, instead ciency standard is lower—not because the soccer mom. We wanted the soccer of locking automakers into costly in- their SUV fuel efficiency standards are moms’ vote. But while we were chasing cremental CAFE increases. lower or that their light trucks are the soccer moms, the soccer moms I urge my colleagues today to vote lower, it is because they sell more of were chasing after car companies that for the Levin-Bond amendment and these microcars. That is why they are made SUVs and minivans. And why do support increased fuel efficiency and a able to comply with higher CAFE American women love SUVs and vibrant, economically healthy U.S. standards. minivans? Because they need increased auto industry. I believe we do need conservation. passenger capacity and they want in- I yield the floor. There is no doubt we need to reduce creased safety. The PRESIDING OFFICER. The Sen- our dependence on foreign oil. We all When you are a soccer mom and you ator from Maryland. acknowledge that half of our oil is im- are picking up the kids or you are car- Ms. MIKULSKI. Mr. President, I rise ported. A quarter of our oil is imported pooling or have kids with gear, such as as an enthusiastic cosponsor of the from the Persian Gulf. We know we the soccer kids, or the lacrosse kids or Levin-Bond amendment on these CAFE need to reduce our dependence. But we the ice-skating kids, they come with standards. could do it through the kinds of rec- their own gear. Some children have Our amendment, I believe, provides a ommendations made in the Bond-Levin backpacks as large as a marine going strategy for energy conservation while amendment. off to Afghanistan. Those mothers need safeguarding American jobs. I believe Before I go on to talk about Bond- large capacity. in energy conservation. I believe it is Levin, let me talk a little bit about the Do you know what else they need? an absolute national necessity. But I Kerry-Hollings proposal. I know my They need passenger safety. They want also believe in job conservation—Amer- colleagues have worked very hard on to have a bulkier car in order to be ican job conservation. this, and we all share the same na- able to protect their children on these I believe we can improve the fuel effi- tional goals. But how we get there I am highways and byways that we are now ciency of our cars without sticking a not so sure is in the national interest. constructing. Anyone who rides the 495 knife through the hearts of our Na- First, it is unfair to American work- beltway in Washington or 695 in Balti- tion’s auto workers. ers because it gives foreign manufac- more knows we face big trucks; we face

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1753 road rage. Mothers want to be in the ing else there. We can talk about dig- senger cars we have to have a rule functional civilian equivalent of a ital harbor or smokestacks and within 6 months. It also separates out Humvee. Why? Because they are cyberstacks, and we can be cute and standards for cars and light-duty scared. They are scared for their chil- clever; but when this goes, it goes for- trucks. Remember, this is one of the dren and for their safety. So they go ever. crucial aspects of this amendment. It big and they go bulk. Now, I am on this floor fighting for separates out the standards for cars Do we approve of it? Would we like those people. Do you know why? Their and light-duty trucks. We can compete better fuel efficiency? The answer is, sons are actually the ones who went to with anybody in the world. But where absolutely, yes. I know a lot about Vietnam, the ones who were in Desert you have a disproportionate thing these minivans because General Motors Storm, and the ones who are in Af- going on in the market, it renders us makes two of them, the Chevy Astro ghanistan. During the Vietnam war, almost helpless. and the GMC Safari, right in my home- there was no draft counseling in that The automakers such as town of Baltimore. Right this minute line. Every time America calls, these DaimlerChrysler have a fleet that is at Broening Highway in Baltimore, kinds of workers step forward. Often, roughly 70 percent light trucks, while there are 1,600 employees working to their brothers are our firefighters and manufacturers such as Honda have a produce these Astro and Safari vans. In our police. These are the ordinary fleet that is less than 30 percent light 1 year they make 80,000 vehicles. That Americans who, every day, are willing trucks. I believe the Levin-Bond keeps 1,600 workers happy and 80,000 to step up. amendment does it very well. consumers happy. So while we are talking about hy- We need tax incentives on electric That 1,600 sounds like a lot of jobs. In brids, and while we can nibble at our vehicles, fuel cell vehicles, and hybrid 1978, we had 7,000 jobs. We have sushi and talk about the future that is electric vehicles. Everybody likes downsized. We have modernized. We going to be ozone-ready, we have to them. I will see if they work over time. have strategized. But we are down think about who is going to work in I have seen a lot of these kinds of cars close to 6,000 jobs. this country and where they are going come and go. Some work very well, I feel very close to these workers. I to work. Do we want to give up on our some sputter and end up in a junkyard grew up 4 miles from this plant. My manufacturing base? I don’t think so, clutter. I don’t know where they will dad had a grocery store. People who and I hope not. Whether it is in De- go, but I will give them the benefit of worked at General Motors and Beth- troit, or Maryland, or whether it is the doubt. I want to see the tech- lehem Steel were not units of produc- other States that employ them—and nologies road tested more before they tion or those who have to give way to we are happy to have the Hondas. I are introduced. displacements in the info age. They have a UAW plant up in western Mary- I know others want to speak. I be- were our neighbors; they are our neigh- land that is now part-owned by Volvo. lieve we can have energy conservation bors. We are happy to have them because and job conservation, innovative solu- What did we know about the General they honor their contracts. tions, improved technology, and the Motors plant? It was a union job. We But I think we ought to start hon- setting of realistic goals. That is what knew it offered a good job at good oring our contract. We ought to have a Levin-Bond does. When you look at wages and good benefits. We knew they contract with the American workers. Levin-Bond, you see that it saves en- were good neighbors because they spon- There is something about America we ergy, jobs, and it saves lives. For those sored the little leagues and were one of need to remember: That as we defend now who are speaking in the Chamber the largest contributors to the United America from foreign foes, we need to so passionately about energy independ- Fund to be able to help others who defend America from the loss of jobs to ence and why it is in our national secu- didn’t quite have the good jobs and the foreign imports, or to something called rity interest, I hope we talk about good wages that they did. CAFE, or let’s put everybody in the trade adjustment and start standing up For our working men, they could ac- same pot and measure the standards in for steel and what we need to do to tually go to work and not only put in the same way. make sure we are steel-independent. I an honest day but get a fair pay back Mr. President, 1,000 workers were re- hope we have the same passion in to be able to raise their families and cently laid off at General Motors on a standing up for our steelworkers. I am pursue the American dream. temporary shutdown because of a lot of going to stand up for those hardhats In my hometown of Baltimore among this. I could go on about those workers, every day any way I can, whether it is African-American men, when I grew but I think I have made my point. Just in the automobile industry, or whether up, Baltimore was a segregated town. remember, when these jobs go, they go, it is in the steel industry, and so on. But down there at the steel mill in the and they will never come back. While For all of those men and women who, UAW line, it is where African-Amer- we are so busy putting everything on a every day, at plant gates shook my ican men went to get a decent job. If fast track to Mexico, I will tell you hand—and their hands were calloused, you were an African-American male in that they go to Mexico first, and then and they would go home with bad Baltimore, you had two choices where they find Mexico too expensive and backs and varicose veins—BARBARA MI- you could have a decent job, decent they go to Central America, and then KULSKI is on their side, and I hope the benefits, and a chance to be able to they go on to China. So we have to rest of the Senate is also. move up. It was either a civil servant start making some tough choices. The PRESIDING OFFICER (Mr. job, such as at the post office, or it was We could go on to talk about the JOHNSON). The Senator from Massachu- a union job, such as at General Motors. other issues, but I know we also need setts is recognized. As more and more women came into to look at the other alternative. I be- Mr. KERRY. Mr. President, I have the workplace, again, for many women, lieve the Levin-Bond amendment is a listened with great interest to the com- General Motors was the place to go. We very sensible alternative. It really ments now of a number of my col- employed the ‘‘Norma Raes’’ of auto- works to reduce our dependence on for- leagues—each of those who are the mobile manufacturing. eign oil, but it also insists that we look sponsors of the Bond-Levin amend- We are talking about honest Ameri- at the effect on U.S. employment; that ment—and I have really listened with cans who get up and work hard every we look at motor vehicle safety; that interest because the debate that I day. They wanted the American dream, we look at the cost and lead time for think the Senate deserves to have right and they had opportunities. People the introduction of new technology. I now is one based on the truth, based on with European ethnic heritage and peo- believe new technologies will help us the facts, based on science, and based ple with African-American heritage lead the way. on history. I have heard some of the had a chance to work hard and move I think it also gives us an open-ended most remarkable Alice-in-Wonderland up. Many of them had a chance to go dodge ball kind of situation because it comments in the last few minutes that on to higher education, and their chil- gives two dates and time lines to the I find it hard to believe we are really dren did also. But we now have these Department of Transportation. It says talking about the same thing. 1,600, and when this goes, it goes. When we have to increase standards for light Senator BOND suggested that if we this goes, it really goes. There is noth- trucks in 15 months. It says for pas- don’t accept their amendment, people

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1754 CONGRESSIONAL RECORD — SENATE March 12, 2002 are going to actually be driven into hicle’’—I want to juxtapose this. I want American operation. In fact, in the last getting into golf carts—a string of golf to read a paragraph from an editorial years, we reached a peak of automotive carts—which is not a very efficient way in Automotive News. It is about the employment in the United States in for a family to be transported. I heard CAFE hearings in the Commerce Com- 1999. We have lost a few workers in the another comment that we don’t want mittee, at a time when the industry re- last few years, I acknowledge that, but to push people into imported vehicles. fused to discuss any notion of improv- we did it without CAFE standards. One Well, of course, we don’t. ing fuel economy. reason is because the companies moved I just listened to a very appropriate I point out this editorial in Auto- some plants to Mexico. They do not and distinguished speech about work- motive News: tell you that. ers in this country. I remember with Let’s get real. It’s time for automakers to Even while they are doing that, Toy- great pride that moment in 1971 when deal forthrightly with fuel economy issues. ota and Honda are moving plants to Leonard Woodcock introduced me to These are not the 1970s or 1980s or even the the United States. Look at this map. the United Auto Workers and I was in- 1990s. To deny or refuse to admit that there We have Toyota in New York; Toyota ducted as a lifetime member. I don’t is technology that can reduce fuel consump- in Buffalo, WV; Toyota in Georgetown, know anybody who runs for office in tion significantly is ludicrous. The indus- KY; Toyota in Columbus, IN; Toyota in try’s credibility is at stake. this country on a getting-rid-of-jobs Princeton, IN; Toyota in Huntsville, platform. I don’t know anybody who Let me emphasize, this is Auto- AL; St. Louis and Troy, MO; Newport comes to the floor of the Senate sug- motive News writing that the indus- Beach, CA; Torrance, CA; Ann Arbor, gesting, knowingly—and I hope not try’s credibility is at stake. I urge my MI; Freemont, CA; Torrance-Gardenia, negligently and inadvertently—that a colleagues not to be intimidated by CA; Long Beach, CA; Whitman, AZ. plan they are submitting is going to these hollow threats. The same pattern can be shown for render Americans jobless. This is what Ford Motor Company other automakers. Now they are mak- I am here to defend the workers in says: ing something like 600,000 vehicles in Detroit, and in other parts of this A vehicle that gives you all the room and the United States. What kind of vehi- country, just as much as anybody else. power you want, but uses half the gasoline. cles are they selling in the United When I hear the notion invoked about Half the gasoline. What kind of situa- States, even though the Big Three con- who goes to fight our wars and who tion is this? I do not know how many tinue to dominate the market? I under- comes back as veterans and these are millions of dollars have been spent in stand that. But you have to look at the people who work there—I know the last weeks on television adver- trends. You have to look at the direc- those people, and you bet I want them tising to farmers that you cannot farm tion in which you are moving. In 1975—and I want to go back to this to keep working. I believe they can in a compact car. Well, no; whatever. because this is an important part of keep working. There is nothing that Really? I mean, what a phenomenal the context of this debate. This debate suggests that somebody in Detroit can- concept. People believe that? CAFE is not just about this moment in time. not make a better car than the Japa- standards do not even apply to trac- It has a history and we have to balance nese. There is nothing to suggest that tors. They do not even apply to heavy the choices we face today against the a Detroit worker, or one in any other trucks now. And if we do our will in the Senate, they probably will not apply to history of where we have traveled. part of the country, can’t make a bet- I want to show this chart, but let me pickup trucks. What are we talking ter and more efficient car than the go to the beginning. Motor vehicle about here? Germans. American workers are the miles in the personal automobile vehi- The chart of the Senator from Michi- best workers, the most productive cle are at the lowest level in 20 years. gan is a very selective chart. It does workers in the world. Those workers We are going backwards in fuel effi- not show all the vehicles in the mix. I are handicapped by choices made by ciency. management. will come back to that in a minute. My colleagues say: Oh, we are mov- The worker does not decide what the We heard a threat about safety. We ing up in this direction; we do not need model is going to be. The worker does heard a reading from the National to have a dictate from Congress; we are not decide which car is going to be Academy of Sciences about safety. going to get there because the auto- manufactured and what the changeover That was page 28 of the National Acad- mobile industry is going to get there date will be. They report every day and emy of Sciences. Let me read page 70 without a mandate. go to the floor. They punch in and from the National Academy of Let me show the record for the last make the cars that the designers and Sciences. It says as follows: years. From 1988 until the year 2001, of the executives give them to make, and It is technically feasible and potentially all the new technologies that were de- they do it well. economical to improve fuel economy without veloped by the American automobile I proudly drive one of those reducing vehicle weight or size and, there- industry, 53 percent of those new tech- minivans. I drive a Chrysler minivan. I fore, without significantly affecting the safe- nologies went into horsepower; 18 per- ty of motor vehicle travel. think it is a terrific car. It is my sec- cent went into acceleration; 19 percent ond one, and I hope to get another one Those workers in Detroit and else- went into weight; minus 8 percent went down the road. where, about whom we all care, can into fuel efficiency. Mr. President, let me tell you some- build the cars of the future. They can We now have cars on the road that thing: There is nothing in the CAFE build a more efficient vehicle. They can go 140 miles an hour, even though standard that makes me believe I will can build the hybrid electric SUVs the speed limit is 65, 70, 80 permissibly not be able to drive a minivan at any with all the room and all the power one in some places. One can only go so fast time in the future. Nothing. would want and twice the mileage if between stoplights in many cities. What kind of scare tactic is this? Do Detroit will choose to ask them to do Minus 8 percent on fuel efficiency. I you want to put the lie to this, Mr. so. like driving a big car, too. I am just President? Here it is: ‘‘Coming in 2003. That is what this debate is about. It like any other American. Indeed, for a The Ford Escape hybrid electric vehi- is about the future for our country in number of years, all of us have been cle, the first high-volume, mainstream national security, on environmental forced to think in the defensive way alternative to the traditional issues such as global warming, and that has been referred to. You see an- powertrain in nearly 100 years.’’ Bill even it is about whether or not we in- other big car on the road, you get a lit- Ford, chairman of the Ford Motor tend to be competitive with the Japa- tle intimidated and say: Gee, if I am Company. nese and Germans because, as I will going to protect my kids, I am going to Congratulations, Mr. Ford. I hope show, the Japanese and Germans are have a big car on the road, too. your stock goes up. I hope you will be building vehicles that Americans want In fact, what has happened in the last recognized as the leading CEO in the and increasingly they are growing the years, according to the National Acad- country for starting to promote effi- marketplace in the United States. emy of Sciences that the Senator from cient vehicles. Let me go to that for a moment, if I Michigan quoted is that the Toyotas The fact is that on its own Web site, may. This is a chart—I do not have it and the Honda Civics went from weigh- the Ford Motor Company says: ‘‘A ve- blown up—but this is Toyota’s North ing about 1,800 pounds up to 2,600

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1755 pounds. The Honda Civic grew in they say go to Congress; Congress troit about whom we care. We are try- weight, and indeed some of the other ought to do it. ing to save jobs in America by making big SUVs grew also. It is true if a In 1989 and 1990, they specifically an industry that is so reluctant to em- Honda Civic hits a big SUV, your said, we really think NHTSA is the brace change live up to a standard that chances of doing well in the Honda proper place to do this. Then lo and be- will make their automobiles competi- Civic are not as great. I understand hold, the Republicans controlled the tive. In fact, the National Academy of that. House and the Senate in 1995 and An- Sciences says the cost of doing this is The older National Academy of drew Card, then representing the auto- saved to the consumer in the gasoline Sciences study, which the Senator re- mobile manufacturers, said, oh, no, we savings over the lifetime of a car. The lies on when he talks about safety, did do not think NHTSA is the right place, gasoline savings will save the differen- not include airbags. It did not include contrary to what they had said for the tial in cost, in addition to which we are the new standards of restraints. It also last few years. They said, we had better prepared to provide a tax credit to peo- did not include what we have in our go to Congress. ple who buy the efficient cars. So we bill, which are rollover standards, be- What we see today is an effort to con- can make up the difference of cost to cause the biggest single problem for gressionally implement the same kind Detroit. We can make up the difference Americans in terms of SUVs is rolling of forum shopping for the least stand- of cost largely to the consumer if that over and being crushed because we ard possible for the least environ- is what we want to do. This is not a have no standard for the roof and for mental effort possible. zero sum game of jobs or national secu- the roll capacity of the car. So the fact I want to show a little bit more of rity, protecting the environment, re- is these cars can be made efficient and this history. My colleagues may not be ducing our dependence on oil, and safe at the same time. familiar with the background, but let being more efficient, and reducing, in- They are trying to scare people with me point to some of the comments of cidentally, extraordinary costs to our this safety standard. I heard one of my the industry in the last years as we citizens of the air quality that they colleagues say we have to do this based analyze where we are trying to go. breathe. on science. Well, it is based on science. I also want to put in proper perspec- I might add, if we were to do what we It is not arbitrary. This is not a figure tive what I said about these advertise- are seeking to do, we would cut global picked out of the sky, as one of my col- ments. In the last 3 weeks, this is what warming pollution by 176 metric tons leagues has said. This is a figure that is the industry has said publicly: by the year 2025. There is no other ef- less than many scientific analysis say Make no mistake, the Senate proposals fort in the United States of America we can achieve. would eliminate SUVs, minivans and pickup that is as significantly capable of add- I want to make very clear to my col- trucks. If these proposals pass, the only ing now to the Clean Air Act efforts al- leagues that this is not a vote between place you will see a light truck is in a mu- ready in effect than to try to join the seum. the Kerry-Hollings 35-mile-per-gallon world in being responsible about global standard and the Levin-Bond proposal. What they said in 1975 was: warming. That is part of what this vote The reason it is not that vote is that If this proposal becomes law and we do not is about. Senator MCCAIN, Senator COLLINS, Sen- achieve a significant technological break- The scare tactics being used by the ator SNOWE, Senator GORDON SMITH, through to improve mileage, the largest car industry today are absolutely no dif- the industry will be selling in any volume at and Senator CHAFEE have joined to- all will probably be smaller, lighter, and less ferent than the scare tactics they used gether with Senator FEINSTEIN and oth- powerful than today’s compact Chevy Nova, 25 years ago, when there was a com- ers on our side of the aisle with a pro- and only a small percentage of all models pletely opposite outcome from what posal that alters the current Kerry- being produced could be that size. they predicted. Every scientific input Hollings proposal. It is not my pref- That was the threat in 1975. That was and analysis shows you can create net erence, but I understand the votes in General Motors. Let me read what jobs at no net cost to the consumer the Senate, and it is what we need to Chrysler had to say: with no loss of safety. That is the find- do to compromise. It will reduce the In effect, this bill would outlaw a number ing of the National Academy of standard in the bill today to about 32 of engine lines and car models, including Sciences. miles per gallon if the full trading pro- most full-size sedans and station wagons. It I would love to see a list of what con- gram is used, which I ask my col- would restrict the industry to producing sub- sumer group in America, what environ- leagues to think about. compact-size cars, or even smaller ones, mental group in America, supports The current fleet average is about 25 within 5 years, even though the Nation does Bond-Levin. What consumer group in miles per gallon. If we cannot go 7 not have the tooling capacity or capital re- this country will say safety is com- sources to make such a change so quickly. miles per gallon in 13 years, what can promised? None. Not one. Why? Be- we do? That is the vote. This is a vote Did that happen? Did any of this hap- cause they do not support Bond-Levin. whether or not we want no standard at pen? I will tell you why. Let me read a all and you turn it over to NHTSA, Then Ford said: statement from the two important which has a long reputation of being Many of the temporary standards are un- automobile safety groups in America, managed by administrations and by reasonable, arbitrary— the Public Citizen and Center for Auto- outside interests and not being able to ‘‘Arbitrary,’’ that is a word we have mobile Safety, are both supporting a set the standard. It is not even staffed heard again— CAFE standard. efficiently enough today to be able to and technically unfeasible. If we cannot This is what they say: The auto in- do it. The NAS is in fact better staffed meet them when they are published, we will dustry is using an outdated, inac- and has had more background research have to close down. curate, and hypocritical argument than they have done in years, because The fact is, the industry flourished. about safety to try to derail stronger on the other side of the aisle in 1995 The industry met the standards, and corporate average fuel economy stand- Speaker Gingrich and the Republicans more people were employed. The indus- ards. Public Citizen and the Center for brought a complete prohibition on the try actually turned around and became Auto Safety have long been two of the ability of the EPA to even analyze competitive. strongest voices calling for safer vehi- what might be the benefits of raising Our colleague, Senator FRITZ HOL- cles in the United States. We do not be- the standards. LINGS, helped write these laws. He was lieve that stricter fuel economy stand- That tells you a huge story. It says in the Senate then. I expect he will be ards must cost lives, and we know that what you have is an ongoing process by in the Chamber to talk about that ex- a strong fuel economy bill can save which the industry is fighting against perience. Senator HOLLINGS heard lives by changing the nature of Amer- whichever forum might be the least these same arguments, and Senator ica’s vehicle fleet. friendly to it. When Congress might do HOLLINGS said then: How does it change the nature of something, they say go to NHTSA if I am not trying to shut you down. I am America’s vehicle fleet? Very simply: the administration has a handle on trying to save your jobs. It reverses this trend where all the NHTSA. When NHTSA might do some- That is in fact what happened. I say technology goes into horsepower and thing, if they are in control of Congress the same thing to those workers in De- acceleration—for cars that already go

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1756 CONGRESSIONAL RECORD — SENATE March 12, 2002 twice the speed limit—and puts some of ductions in vehicle size and weight that traf- improve safety, albeit by a ‘‘small and sta- it into weight and fuel efficiency so fic fatalities will increase ‘‘by the thou- tistically insignificant’’ margin. The finding you actually reduce the largest weight sands.’’ contradicted an earlier finding by the Na- And Sen. Zell Miller (D-Ga.) believes the tional Highway Traffic Safety Administra- and size. You do not have to give up legislation should at least make an exception that higher mileage standards—and any capacity within a car. A minivan tion for pickups, which he described as the lower vehicle weights—had added to highway will stay a minivan. It will still take ‘‘think tank of rural America’’ because deaths. soccer moms to soccer games. It can ‘‘more problems have been solved on the tail- Such nuances get short shrift in industry still be filled up with whatever the gates of pickup trucks after a long day’s ad campaigns. The Coalition for Vehicle legal number of kids is, and dogs, and work than have been solved anywhere.’’ Choice, which is backed by the three major all of the paraphernalia of sports. But Such emotive language is typical of the auto manufacturers, is running print ads in New Hampshire urging voters to contact guess what. It will get to the soccer unfolding Senate debate on the legislation, which would raise average fuel economy their senators on behalf of ‘‘the endangered game costing less money. It will get to standards for the American automobile fleet SUV and pickup.’’ The ad shows a snow- the soccer game in a way that repays from 24 miles per gallon to 36 miles per gal- mobile blasting through a drift above the the cost of the car over the lifetime lon by 2015. As described by opponents, the caption, ‘‘Without SUVs, you’re looking at and may even create greater savings, measure is an elitist assault on a cherished one expensive piece of garage furniture.’’ and savings when our standards for national birthright that would compromise ‘‘Imaging climbing an icy mountain, tow- rollover and safety are adopted. safety, limit consumer choice and impose ing your snowmobile, but instead of driving undue hardships on Americans who have a pickup or an SUV, you’re driving a com- This is the most bogus argument I pact car,’’ the ad says. ‘‘That’s what you have ever heard in my life. The history come to depend on big, powerful vehicles for work and play, especially in rural areas. could be forced to do, if some U.S. senators of this issue proves it is. As is often the case when Washington de- get their way.’’ Honda, in its testimony before the bates policy, however, emotions and symbols A similar ad—paid for by groups such as Senate Commerce Committee, said the are getting more attention than substance. the U.S. Chamber of Commerce and the Na- following: Honda concurs with the dis- Although any increase in gas mileage inevi- tional Automobile Dealers Association— senting opinion expressed in the Na- tably will come at a cost, the notion that the shows a forlorn looking man next to an SUV, bill would rid American highways of SUVs a canoe strapped to the roof and two small tional Academy of Sciences report that girls sitting on the hood. ‘‘We work hard all the data is insufficient to conclude any and pickup trucks—as some auto industry ads explicitly claim—is false. year so our family can go fishing and camp- safety compromise by smaller vehicles. ‘‘The fact of the matter is, you might have ing together,’’ the ads says. ‘‘We couldn’t do The level of uncertainty about fuel to use some of this improved fuel efficiency it without our SUV.’’ economy-related safety issues is much to improve economy rather than increasing Many of those arguments were repeated al- higher than stated in the record. Sig- performance, but certainly it doesn’t mean most verbatim last week on the Senate floor. nificantly, existing studies do not ad- that you couldn’t have an SUV,’’ said Adrian Lott said the CAFE measure would rob him dress the safety impact of using light- Lund, chief operating officer of the Insur- of quality time with his grandchildren be- ance Institute for Highway Safety and a cause he likes ‘‘them to be able to ride in the weight materials without reducing same vehicle with me.’’ size, especially for vehicles with ad- member of a blue-ribbon panel that studied the issue for the National Academy of As it happens, Lott is already doing his vanced safety technologies. Sciences last year. part for conservation. He drives Honda CRV, I might add that we specifically Paul Portney, chairman of the panel and one of the smallest and most fuel-efficient looked for a rollover proposal that president of the think tank Resources for the SUVs on the market. would greatly improve the safety Future, called the legislation ‘‘somewhat ag- Mr. KERRY. Mr. President, in 1972, standard. gressive.’’ But he said it was ‘‘roughly con- 1973, and 1990, each time the auto in- The other day in the Washington sistent with what the academy identified as dustry has said: We cannot do this. Post there was an analysis by the being technologically possible, economically They said it about seatbelts. They Washington Post that said the threats affordable and consistent with the desire of said it about laminated windshields. consumers for passenger safety.’’ They have said it about every single re- of the industry are false. That is the He added, ‘‘There are technologies out language of the Washington Post. there that would make it possible, if given quirement, each time Congress has Although any increase in gas mileage in- enough time, like 10 to 15 years, for [manu- agreed we ought to try to do these evitably will come at a cost— facturers] to meet these standards without things. This is not arbitrary. Congress And I have acknowledged that there decreasing the size of the cars or increasing has made decisions about safety, fuel is some increase in cost— the price too much.’’ efficiency. Those on the other side of the debate, of We invited Ambassador Stuart the estimates of the National Academy are course, have also been known to gloss over $500 to $2,000 over the period of time. Eizenstat to testify before our com- inconvenient data. As the legislation is mittee. In 1975, Mr. Eizenstat was the But the notion that the bill would rid structured, for example, manufacturers domestic policy adviser to President American highways of SUVs and pick- could chose to improve fuel economy not Carter. He was part of the team that up trucks, as some auto industry ads only by technology but also by cutting developed the first CAFE standards. explicitly claim, is false. weight, which could make vehicles less safe, His testimony speaks very directly to I ask unanimous consent that the Lund said. In similar vein, raising the Corporate Av- this issue. I will quote from his testi- Washington Post article ‘‘Fuel Econ- erage Fuel Economy, or CAFE, standard mony. He said: In spite of the obvious omy Turns Emotional’’ be printed in would force manufacturers to divert re- merits of the standards, the American the RECORD. sources into fuel efficiency at the expense of automobile manufacturers were op- There being no objection, the article performance improvements sought by con- was ordered to be printed in the sumers, such as better acceleration or new posed to the regulations. I remember their opposition well. In my role as do- RECORD, as follows: dashboard gadgets like on-board computers and satellite navigation systems. mestic policy adviser to President Car- [From the Washington Post, Mar. 10, 2002] ‘‘There are exaggerated claims on both ter, I was part of the team that devel- DEBATE ON FUEL ECONOMY TURNS EMOTIONAL sides,’’ Portney said. ‘‘It’s certainly not the oped the first CAFE standards. Those With a hearty shove from Detroit, Senate case that we can ambitiously boost fuel standards set the fuel economy levels opponents of a bill to raise automotive fuel economy and laugh all the way to the bank for the period 1977 to 1985, starting at economy standards—part of broader energy doing it. It diverts car companies from doing legislation now on the Senate floor—are things they would otherwise do.’’ 18 miles per gallon in 1977 and rising to painting the measure in apocalyptic terms, But the trade-offs associated with higher 27.5 in 1985. sketching dire consequences for the nation’s fuel economy standards may be less burden- He said: I specifically remember a armada of SUVs and minivans. some than some in the auto industry, or Con- meeting in the Cabinet office with Senate Minority Leader Trent Lott (R- gress, would suggest. For example, the high- President Carter and the heads of the Miss.) calls the proposal—by Sens. John F. er purchase cost of a fuel-efficient vehicle Big Three automobile manufacturers: Kerry (D-Mass.) and John McCain (R-Ariz.)— would likely be offset by lower gasoline costs Ford, General Motors, and Chrysler, in an example of ‘‘nanny government’’ that over time. which all three strongly opposed the would deprive him of the SUV he uses to Nor is it clear that stiffer mileage rules haul around his three grandchildren. would compromise safety. Last month, a imposition of fuel economy standards. Sen. Don Nickles (R-Okla.) whose wife consulting firm hired by Honda Motor Co. re- They claimed their companies lacked drives a Nissan Pathfinder, warns that high- ported that reducing the weight of cars and the technology to reach the standard er fuel standards will force such drastic re- light trucks by 100 pounds would actually that the administration had in mind.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1757 Does that sound familiar? Yet once SUV by the year 2003? Does the Senator desire for comfort and convenience for the CAFE standards were implemented, find a certain irony in these historical the American people is the issue of all three companies met and exceeded perspectives on this issue? health aspects. I wonder if the Senator the standards. Mr. KERRY. Mr. President, let me from Massachusetts is familiar with I can imagine the pressure you are say to the distinguished Senator from the problem that we have in my home under from those same companies and Arizona that each and every one of State of Arizona, particularly in the others as you consider raising the those comments is just a mirror image valley where 3 million people reside in standards. But as you embark on this of the comments being made by the in- the sixth largest city in America. The process, I strongly urge you to recall dustry today. Arizona Republic, a few days ago on our experiences in developing the first As I mentioned before the Senator March 9, had an editorial entitled set of CAFE standards. You should feel came to the floor, I read an editorial ‘‘Legislature Must Attack Brown confident that the automobile manu- which came from one of the auto- Clouds.’’ It said: facturers do have the ability to achieve motive magazines that specifically said We’ve always known the Valley’s Brown and, in fact, surpass whatever stand- the industry’s credibility is on the line Cloud is ugly and unhealthy. Now we know it ards you set. and that they have to get serious. can be deadly. I believe Ambassador Eizenstat has I met with some of the industry’s A new study indicates that years of breath- proven himself to be an enormously ca- representatives. I talked to Mr. Ford ing that haze of particulate pollution will pable negotiator, and very studious, on the telephone for a few minutes. I significantly raise a person’s risk of dying of lung cancer and heart attack. and I think most people would agree said I thought it would be good if we tried to get together and do something For lung cancer,the risk is the same as liv- one of the most thoughtful contribu- ing with a cigarette smoker, according to a tors to positive dialog in the political thoughtfully. I asked the industry this question: Is report published this week in the Journal of process in this country. He said we it possible for you to agree that you the American Medical Association. The should do this; we can do this. He testi- study, funded by the National Institute of could get 1 mile per gallon over the fied before the committee, as, I might Environmental Health Sciences, is compel- next 30 years? They absolutely refused add, did countless other entities in this ling because of its breadth: Researchers fol- to acknowledge they could get 1 mile country that were affected one way or lowed half a million people across the coun- per gallon. Why? Because they simply try over two decades. the other by the potential of this want this issue to go over to NHTSA While the Valley has made strides in re- change. where they believe they have the abil- ducing carbon monoxide and ozone pollution, Mr. MCCAIN. Will the Senator yield? ity to have more impact and control we’ve had trouble getting a handle on pollu- Mr. KERRY. I am happy to yield. the outcome. tion from airborne particles. Mr. MCCAIN. Is it true, in the view of The Senator’s question is right on No, it’s not just desert dust. The most dan- the Senator from Massachusetts, that gerous particles are much smaller, 2.5 mi- point. These are the exact same scare various claims have been made over crons or less, so tiny that it takes at least 28 tactics. to equal the diameter of a human hair. These the past several years, particularly The Senator from Missouri came back in the 1970s, the last time CAFE ultra-small particles, which wreak havoc by down here and suggested that people penetrating deep into the lungs, come from standards were increased, in fact, these and soccer moms will have to drive in combustion. comments were tantamount to the end a long line of golf carts because they In the East and Midwest, the biggest cul- of Western civilization as we know it? could not drive their minivans. With prits for such particulate pollution are coal- Is there a strange similarity between all due respect to the Senator from burning power plants. So it’s worrisome that those comments made in the 1970s and Missouri, that is one of the most ridic- the Bush administration is considering those made today? Has the Senator no- ulous things I have ever heard in my changes in the rules for power plant expan- ticed that? sion that could bring increased emissions. life. The fact is, Ford Motor Company Here in the Valley, as elsewhere in the Let me give an example, Daimler- has an ad showing the SUV with all the Benz senior vice president, from the West, a big part of our particulate pollution room and all the power. A soccer mom spews out of tailpipes. New York Times: We are facing a rad- could get in it and get 40 miles to the I am not sure. I wonder if the Sen- ical and unrealistic proposal. The pro- gallon, and a minivan can drive with ponents are being dishonest. You can- ator from Massachusetts thinks it is the same engine, or even a better one. fair for us to address this issue of emis- not get 35 miles per gallon and still In Europe today, they are making have sport utility vehicles and sion standards without discussing at diesel engines that get 40 or 50 miles to length the abundance of information minivans. the gallon. Shame on the United concerning health risks to the Amer- Bill Burke, the No. 3 man at Ford, in States. Our automobiles aren’t able to ican people. I have a chart here on June 1976: In a year to 18 months, I see give our drivers that kind of gas sav- sources of carbon monoxide. In Phoe- a rising demand at the small end. It ings and performance. Why not? We are nix, AZ, on the road, Mobile, it is 64 will be pretty hard for any but pint- anxious to try to get our cars that kind percent. size cars to get that kind of mileage. of mileage. I want a UAW worker pro- There is another article that I have Mr. Morrison, GM spokesman, said it ducing that car ahead of some worker here of February 1, 2002: would be virtually impossible to meet in Germany or in Japan. I want our standards resembling that. We will automobile industry to be the industry Study Links Smog To Rise in Asthma Cases of Children Who Play Outside. have to tear our product line up. that is selling those vehicles. The In 1974, a Ford representative said be- workers in Detroit ought to be rising Guess what States, according to this fore the Senate Commerce Committee, up not about CAFE standards; they study, generally speaking, have the on which Senator KERRY and I serve, ought to be knocking on the doors of highest chronic pollution level in the that CAFE will require the Ford prod- the executives and saying: Why aren’t United States. They are Arizona, Cali- uct to consist of either all sub-Pinto- we building better cars, bigger cars, fornia, Georgia, Indiana, Michigan, sized vehicles or some types of vehicles and cars with more improved fuel effi- Missouri, New York, North Carolina, ranging from a subcompact to perhaps ciency? You could build a bigger car— Pennsylvania, and Tennessee. a Maverick. even bigger than the ones we have I wonder if the Senators from Michi- The spokesman for the Alliance of today. gan and Missouri are concerned about Automobile Manufacturers said that if Incidentally, some Suburbans, one of the fact they are on the top 10 list of these proposals pass, the only place the biggest vehicles of all, doesn’t pollution problems which cause health you will see a light truck is in a mu- come under the CAFE standards right problems and difficulties to their citi- seum. now. You can buy all the Suburbans zens. Is there a haunting similarity be- you want. You can buy a heavy duty I wonder if the Senator from Massa- tween those comments made back in truck that is under the exemptions. chusetts agrees that there are compel- the 1970s and today that the Senator Mr. MCCAIN. Mr. President, will the ling health issues here that have to be from Massachusetts may have detected Senator yield for another question? addressed as a result of the fact that at the same time the Ford Motor Com- One of the aspects of this issue that we failed to enact simple, fairly easy pany advertises a 40-mile-per-gallon has to some degree been ignored in our changes in our emission standards

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1758 CONGRESSIONAL RECORD — SENATE March 12, 2002 which would, perhaps, in the case of manufacturers have said they were un- they have just started it. They do not one study, save between 650 and 1,000 able to comply, at least initially, have the market penetration yet. They lives just in Phoenix, AZ, alone. whether it be in safety or whether it be have not fully developed the mar- I am curious if the Senator from in CAFE standards or any other im- keting, and they have not gained the Massachusetts believes that perhaps we provement. market share. might be neglecting an important fac- So would the Senator agree with me So, indeed, it is similar to the Pen- tor in the pollution of places such as that if there were any prospect of re- tagon. When the Pentagon buys only X my home State of Arizona where peo- ducing the options of the American number of hammers, as we remember, ple were once sent because they had people, if there were any prospect that or toilets, they cost tens of thousands respiratory problems. Now we have pol- we were doing anything other than en- of dollars. But if they are mass pro- lution problems that are causing risks couraging what is mostly existing duced, then you begin to bring the cost to people’s health. A lot of that pollu- technology to be implemented by the down, and particularly if you market tion is directly related to that, as the automobile manufacturers of America, effectively. Arizona Republic says, ‘‘spewing out of we would not be proposing this legisla- I think the first CEO in this country tailpipes.’’ tion? who sells to Wall Street the notion Mr. KERRY. Mr. President, I appre- The fact is that for every single im- that they are going to be profitable ciate the question very much. I was not provement the automobile industry has selling the cars of the future is going aware actually of the particular study made in America, they have been to drive up the stock of that motor to which the Senator has referred. But dragged, kicking and screaming, every company. And they ought to be think- I appreciate it enormously because he step of the way. And we have just been ing about how to grab the market is absolutely correct that the health over some of those quotes over a period share in the most competitive way that issue is one of the most important of many years. is most effective in the long term. issues. So I wonder if the Senator from Mas- That is what this can do. That is why I call my colleagues’ attention to the sachusetts would respond, again, to the Ford Motor Company is already adver- fact that the existing CAFE stand- really almost irresponsible charges tising the vehicle that ‘‘gives you all ards—the ones we passed in 1975—cut that have been made, particularly by the room and power you want’’—all the gasoline use. By cutting that gasoline the manufacturers, about the cata- room and power you want—‘‘but uses use, incidentally, we cut almost the strophic events that might take place, half the gasoline.’’ That is on their amount we were then importing from when the fact is, we support strongly Web site today. They are bringing it parts of the gulf. But we reduced the the ability of Americans to have a wide out next year. amount of hydrocarbon emissions, choice in their use of conveyance, par- I am confident, with appropriate which is a key source of smog, and ticularly those of us in the West who marketing, just as the Prius, just as which is a key source of particulates, travel long distances with our families. Honda and Toyota, they can begin to as the Senator from Arizona has just Mr. KERRY. Mr. President, I really get profitable very rapidly. But here is described, which particularly affects welcome that question. I appreciate it the rub: They did not do it back in 1975, seniors and children. It affects all from the Senator. until Congress said: This is our na- adults, but particularly we have seen Let me personalize it a little bit. tional priority. And they are not going an increase in the rise of asthma I drove a Lincoln Navigator until a to do it now until Congress sets a goal among children in the United States couple years ago. I got rid of it because and begins to push the process forward. because of the quality of air that is of its inefficiency in fuel. I am sorry to What we are reaching for as a goal is being breathed. say that. I said to the dealer: You real- not an arbitrary goal. Higher gas mileage cars and trucks ly ought to urge the Ford Motor Com- I ask the Senator from Arizona, with- played a key role in virtually elimi- pany to produce a car that is more effi- out losing my right to the floor, if I nating smog in Denver, which during cient. may, is it not true that we held a series the 1980s, as everybody knows, had a I am proud to say Ford Motor Com- of hearings in the Commerce Com- dangerous level of pollution. Los Ange- pany is now evidently doing exactly mittee, with the best scientific experts les also gained enormously. And there that. I would love to drive one that had from across the country, who came and is a huge gain in public health for the the efficiency. My wife drives an SUV. testified before us regarding the ability elderly and all asthma sufferers in the My stepson has an SUV. My daughter to do this without losing jobs? country. is currently driving an SUV. Mr. MCCAIN. To respond to my friend I thank the Senator from Arizona. He I have no question but that if we pass from Massachusetts, indeed they did. I is absolutely correct. a CAFE standard, each and every one also believe that since the Senator (Mr. CORZINE assumed the chair.) of them will continue to be able to from Massachusetts and I can count Mr. MCCAIN. Finally, I ask the Sen- drive an SUV. We can all buy an SUV votes pretty well, the opponents of ator from Massachusetts if he will in America that is more efficient, that what we are trying to do—let’s face it, yield for another question. saves, over the life of the car, the cost the Levin-Bond amendment basically Mr. KERRY. I am happy to yield for of the difference of the technology. does nothing to improve fuel effi- another question. Let me share with the Senator from ciency, and that is a fact. Mr. MCCAIN. I wonder if the Senator Arizona that Honda has introduced its Sooner or later, we will see more and from Massachusetts would support a Insight. It is a two-seater. It gets about more pictures such as we have seen proposal that would force any Amer- 60 miles per gallon on the highway. It here in this editorial, which says: ‘‘Val- ican family to give up a sport utility is about to introduce a hybrid Civic, a ley’s Brown Cloud nearly obscures vehicle. I would wonder—in fact, I am two-door and a four-door, in 2002. Toy- downtown Phoenix from atop South the proud owner of sport utility vehi- ota sells the hybrid Prius. It is a four- Mountain.’’ You will see that in Albu- cles. I wonder if the Senator from Mas- door. It gets 48 miles per gallon com- querque. We already see it in Detroit. sachusetts would not join all of us in bined in the United States. There is a We see it in Boston. We see more and seeking Ford Motor Company to live minivan in Japan that gets nearly 40 more studies of the health risks that up to their advertising in developing a miles per gallon. Within a few years, air pollution causes to young and old 40-mile-per-gallon sport utility vehicle, they are going to sell about 300,000 hy- Americans. which I would be one of the first to brids globally. They have announced I believe that sooner or later our con- buy. that they are going to be profitable in stituents will demand that we rise up Wouldn’t we reduce some of this this field. and repudiate and rebuke the auto- rhetoric that has been going on since I know the Senator from Michigan or mobile manufacturers of America, that the 1970s on the part of the automobile some Senator is going to point out that refuse to be concerned about the health manufacturers? And if my memory the Ford Motor Company is going to of Americans, much less the problems serves me correctly, every single step produce at a loss this particular SUV with our dependency on foreign oil. of the way—from CAFE standards, to shown in this picture I have in the And, yes, every objective observer, airbags, to seatbelts—the automobile Chamber. That is true for now because every environmental group in America,

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1759 believes we need to do a lot more than The auto industry has been pushing for cape hybrid profitable immediately. ‘‘We anything that is embodied in the such a move. welcome tax incentives to get there quick- Levin-Bond amendment. Mr. Patil noted that whether Ford can ly,’’ . . . referring to being profitable with I thank my colleague for his ques- turn a profit with the hybrid Escape, with its the Escape hybrid. tion. costly gas-electric propulsion system, hinges Mr. President, we have a tax incen- largely on whether the government offers Mr. KERRY. Mr. President, let me tive from the Finance Committee. This tax incentives on such vehicles. Late last car can be profitable immediately, ac- share with all of my colleagues—and I month, President Bush said he wants more particularly call the attention of the tax incentives for hybrid and fuel-cell (of hy- cording to the Ford Motor Company Senator from Arizona to this—an arti- drogen-driven) vehicles. Those incentives are itself. cle from the Wall Street Journal dated provided in the bill the Senate will consider. I think we really need to start debat- March 7. I ask unanimous consent the Another Ford executive, John Wallace, ing reality. The Senator from Michigan full article be printed in the RECORD. said in an interview that a $3,000 tax incen- has a chart there. The chart shows a There being no objection, the article tive for the purchase of a gas-electric hybrid number of vehicles. I have a copy of the was ordered to be printed in the should ‘‘solve the problem’’ and help make chart right here. This is a small one of the Escape hybrid profitable immediately. RECORD, as follows: theirs. This chart has large SUV, ‘‘We welcome tax incentives to get there midsize SUV, small SUV, large pickup, [FROM THE WALL STREET JOURNAL, MAR. 7, quickly,’’ Mr. Patil said, referring to being 2002] profitable with the Escape hybrid. small pickup, minivan. It doesn’t show FORD AIMS TO SELL A GAS-ELECTRIC SUV Mr. Patil said Ford is already ‘‘looking to all the rest of the automobile fleet. It THAT WILL OFFER SIZABLE FUEL EFFICIENCY expand hybrid offerings’’ beyond the Escape just shows the big cars. But even those (By Norihiko Shirouzu) hybrid. Hybrids are ‘‘the first credible alter- vehicles may not be fairly represented DETROIT.—As the Senate gears up to de- native to gasoline engines,’’ he said. Other here. bate the fuel economy of sport-utility vehi- auto makers are also pushing plans to ex- By not including cars, the chart ex- cles and pickup trucks, a senior Ford Motor pand the use of hybrid-drive technology. cludes entire classes of vehicles, and Co. executive said the No. 2 auto maker aims Masatami Takimoto, a senior Japan-based they exclude vehicles within classes. to sell ‘‘tens of thousands’’ of a small, executive for Toyota Motor Corp., said at the So you don’t get an entire fair com- superfuel-efficient Escape SUV powered by a Society of Automotive Engineers conference parison. Let me give an example. At gasoline-electric ‘‘hybrid’’ propulsion sys- that Toyota hopes to sell 300,000 hybrids a tem. year around the world within the next five the subcompact class—this is not in- Prabhakar Patil, head of Ford’s program years. Toyota’s second hybrid for the U.S. cluded here—the Honda Civic is signifi- that aims to launch the Escape hybrid by the market will probably be an SUV. Given the cantly more efficient at 38 miles per end of 2003, said at an auto-industry con- popularity of SUVs in North America, ‘‘I be- gallon than the General Motors Metro ference here yesterday that the hybrid Es- lieve it’s a good idea’’ to make a second hy- which is at 32 miles per gallon, or the cape isn’t intended as a niche vehicle. Ford brid product a SUV in the market here, he GM Saturn at 30 miles per gallon, or sees a good chance for the vehicle to become said. Toyota currently sells a small hybrid the Ford Escort at 28 miles per gallon. a ‘‘mass-market vehicle,’’ he said. sedan called the Prius. The auto maker sold You get a distortion of how the fleet Mr. Patil said that if it was priced today, 15,500 Prius models in the U.S. in 2001. The the Escape hybrid would likely have as much only other hybrid currently sold in the U.S. works today. as a 25% price premium over the conven- in Honda Motor Co.’s two-seater subcompact Secondly, the Big Three, sent the tional gasoline-powered Escape, which he called the Insight. Honda’s second hybrid, a Committee charts similar to this one, said would put the SUV’s price tag some- Civic, will arrive in showrooms starting in and they entirely excluded compact where around $25,000. The vehicle is expected April. cars in their analysis. In this class of to deliver nearly 40 miles per gallon of gas in There are no tax incentives currently on vehicles, there are four Toyota and city driving. either the Prius or the Insight, and neither Honda cars: the Prius, Echo, Civic, and Ford’s bullish comments about the poten- model line is profitable in dollar terms. tial of hybrid vehicles comes amid intensi- Corolla. They are, on average, signifi- Mr. Takimoto, who oversees powertrain de- cantly more efficient than the closest fied jockeying in Washington over whether velopment in Japan for Toyota, said there is to significantly toughen federal auto-mile- a ‘‘tough battle’’ looming between advanced General Motors, Ford, and Chrysler age rules. diesel engines and gas-electric hybrid propul- cars. Toyota sells the Prius at 48 miles The National Highway Traffic Safety Ad- sion systems. He believes hybrids are ‘‘proper gallon, the Echo at 36 miles per gal- ministration, which administers the Cor- ceeding a step ahead’’ of diesels and gaso- lon, the Corolla at 33 miles per gallon. porate Average Fuel Economy program, pro- line-powered engines. Honda sells the Civic at 34 miles per posed extending for another four years a con- A recent J.D. Power & Associates survey of troversial provision in the rule that lets auto gallon. The closest General Motors car some 5,200 recent new-vehicle buyers found is the Prism at 32 miles per gallon. The makers get extra credit for building so- ‘‘a greater willingness to pay for hybrid vehi- called dual-fuel vehicles. Those vehicles can closest Ford is the Escort at 29. And cles than previous believed,’’ according to the closest DaimlerChrysler is the run either on gasoline or on so-called E85, a the consulting firm. It said hybrids are ‘‘get- blend of 85% ethanol and 15% gasoline. ting a solid green light’’ from consumers. Neon at 27. NHTSA conceded that the ‘‘vast majority of The survey said 30% of the respondents indi- None of this is represented in the dual-fuel vehicles rarely operate on alter- cated they would ‘‘definitely’’ consider a gas- charts. The Senator from Michigan native fuel’’—a fact that has led critics to electric hybrid vehicle. J.D. Power said the says it doesn’t make sense to have this dub the dual-fuel provision a big loophole in survey’s margin of error was plus or minus system where you have a whole fleet, the CAFE rule because it gives auto makers 1.5 percentage points. let’s divide it up into these sectors. leeway to build more gasoline-thirsty trucks. NHTSA Administrator Jeffrey Runge Mr. KERRY. Mr. President, in this Let’s make an attribute system if said that having vehicles that are able to run Wall Street Journal article, the head- that’s what is needed. I looked at that on E85 ‘‘contributes to domestic energy secu- line which reads: ‘‘Ford Aims to Sell a because both technology and market rity’’ and ‘‘provides consumers an alter- Gas-Electric SUV That Will Offer Siz- mix matter. I am willing to do that, be- native’’ in the event of a gasoline shortage.’’ able Fuel Efficiency,’’ the question was cause the Senator is not entirely NHTSA proposed extending the dual-fuel asked of somebody at Ford whether wrong. Right now, here in the Cham- credit, which was set to expire with the 2004 they could turn a profit with the hy- ber, let’s go to a back room, divide it auto-model year, to the 2008 model year. up into those sectors, give NHTSA the Meanwhile, in the Senate, two Democrats, brid Escape—that is this vehicle shown Sen. John Kerry of Massachusetts and Sen. in the picture I have in the Chamber; it authority to divide up the classes, but Ernest Hollings of South Carolina, are near- is called the Escape—since it has a let’s agree to divide it up with a goal ing an agreement with several Republicans more costly system. that we are going to reach by a certain including Sen. John McCain of Arizona on a I know the Senator from Michigan is point in time. If we did that, we could bipartisan proposal to require cars and light going to say, well, this costs more, and all have agreement. trucks together to average 36 mpg by 2015, it will not turn a profit. Let me just But they won’t agree to a goal. There according to Senate staffers familiar with is no goal in the Bond-Levin amend- the discussion. Today, cars and trucks aver- answer that question definitively right now. ment, no goal whatsoever. They want age about 24 mpg, the lowest level in two to set up some criteria which can be decades. Sen. Carl Levin (D., Mich.) and Sen. Quoting the article: Kit Bond) (R., Mo.) were finalizing an [A] Ford executive, John Wallace, said in the subject of lawsuits for years to alterate proposal that would send the CAFE an interview that a $3,000 tax incentive for come, turn it over to NHTSA. And if question to the Bush administration’s the purchase of a gas-electric hybrid should NHTSA comes up with a 1-mile-per-gal- NHTSA. ‘‘solve the problem’’ and help make the Es- lon differential, there is no expedited

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1760 CONGRESSIONAL RECORD — SENATE March 12, 2002 procedure, no ability for Congress. All Institute for Highway Safety, a mem- Three car assessment showed the fuel they have to do is come up with some- ber of a blue-ribbon panel that studied economy of five different 6-cylinder thing. the issue for the National Academy of cars—the Ford Taurus, It is the artful dodge. It is the great Sciences. DaimlerChrysler Concorde, Chevrolet escape—not to do any disservice to the Continuing from the article: Impala, Honda Accord, and the Toyota name of Ford’s car. It is simply inap- Paul Portney, chairman of the panel and Camry. The chart showed that the five propriate to suggest that this does any- president of think tank Resources for the cars have similar fuel economy. thing. The attributed system the Sen- Future, called the legislation ‘‘somewhat ag- In the cars, they failed to show that ator from Michigan talks about is not gressive.’’ But he said it was ‘‘roughly con- the Honda Accord and Toyota Camry even in his own bill. There is no re- sistent with what the academy identified as come with a standard 4-cylinder en- quirement that they set up an attrib- being technologically possible, economically gine. The 6-cylinder engine is an op- affordable and consistent with the desire of uted system. tion. The reason is, the technology consumers for passenger safety.’’ they have developed allows the Accord Why is that true? Because the indus- He added, ‘‘There are technologies out try doesn’t want it. The industry likes there that would make it possible, if given and Camry 4-cylinder engines to offer the system they have today. And they enough time, like 10 to 15 years, for [manu- greater performance and fuel econ- testified before our committee that facturers] to meet these standards without omy—so much so that they can com- they want to keep the system they decreasing the size of the cars or increasing pete with the 6-cylinder Ford Taurus, have today because the system they the price too much.’’ Chrysler Concorde, and Chevrolet Im- have today gives them flexibility. It All of us are entitled to our opinion. pala. This is demonstrated by the fact gives them the ability to choose and to Everybody is entitled to the rhetoric. that 70 percent of all the Accords sold decide what fleet of cars they are going That is one of the entertaining things are 4 cylinder. So they send you the 6- to make. If you had an attributed sys- about the floor of the Senate. But when cylinder comparison, but they don’t tem, then you would be locked in to you call in the experts, usually their show the car in the same class. They what you have to achieve in a par- opinions have some significant weight. have a smaller engine and more effec- ticular class and you can’t balance Those on the other side of the debate, tive technology. Earlier, I showed the other sectors of your fleet against com- of course, have also been known to technology differentials. In the technology, Honda and Toyota ponents of that class. gloss over inconvenient data. As the have used 4-valve cylinder technology. That is why the industry does not legislation is structured, for example, I might add, there are a series of tech- want it. It makes for great subterfuge manufacturers could choose to improve nologies available now. This is very here in the Senate Chamber. fuel economy not only by technology important for our colleagues to focus Mr. MCCAIN. Will the Senator yield? but also by cutting weight. on. The technology exists today, ac- Mr. KERRY. I am delighted to yield I hope when Senators decide on this cording to the National Academy of for a question. issue, they will listen to the results of Sciences. The National Academy of Mr. MCCAIN. Do you know there is scientific studies, listen to the experts going to be a response from the pro- who have been involved years and Sciences doesn’t even take into account hybrid vehicles. It doesn’t even ponents of the legislation which has al- years, as opposed to the rhetoric we see take into account diesel injection. It ready provided some very interesting coming out of Detroit, MI, from an or- doesn’t even take into account fuel rhetoric? ganization whose credibility over the cells, which may come on line within I would like to ask the Senator from years has been sadly strained. the next 13 years, particularly if we Massachusetts if he is aware of an arti- I wonder if the Senator from Massa- pass the components of our legislation cle in the Washington Post on Sunday, chusetts is aware of these individuals to accelerate that. March 10, entitled ‘‘Debate On Fuel and these findings by a blue-ribbon So if you include hybrid and diesel Economy Turns Emotional.’’ It starts panel that studied the issue for the Na- injection, 35 miles per gallon is a out by saying: tional Academy of Sciences as short a achievable, and more could be done. With a hardy shove from Detroit, Senate time ago as last year. Ford is telling you that by advertising opponents of a bill to raise automotive fuel I thank my colleague for responding. a car that can get 40 miles per gallon. economy standards—part of broader energy Mr. KERRY. I thank the Senator There it is. It should be the end of the legislation now on the Senate floor—are from Arizona again. This article is a painting the measure in apocalyptic terms, debate. Ford Motor Company should be very important article. He was not ending the debate right now because sketching dire consequences for the Nation’s here at the time, but I asked unani- armada of SUVs and minivans. they are telling us we can have a car mous consent, and it is part of the next year that gets 40 miles per gallon, It goes on to quote some of our col- record now in this debate. leagues, quotes such as ‘‘nanny govern- and the Ford Motor Company has told What is very significant is that you us it can be profitable right away with ment’’; higher fuel standards will force have neutral people—and the National such drastic reductions in vehicle size a tax credit. Academy of Sciences does not try to So this is really crunch time for the and weight that traffic fatalities will get into the politics; it is science, and increase ‘‘by the thousands.’’ Then the Senate, I guess; this is basic choice. we ought to respect that—who have Are we going to support the concept article goes on to say—I wonder if the said point blank that the claims of the Senator has seen it— that the Senate has a national security automobile industry are false. Ameri- interest in saving the barrels of oil and As is often the case when Washington de- cans deserve something better than reducing dependency on oil, especially bates policy, however, emotions and symbols having some of the major corporations are getting more attention than substance. our imports from the Persian Gulf by Although any increase in gas mileage inevi- in America lie to them about choices increasing CAFE standards over the tably will come at a cost, the notion that the we face in this country. That is what next 15, 20 years? Do we want to vote bill would rid American highways of SUVs they have been doing. that we ought to have cleaner air to re- and pickup trucks—as some auto industry To hear a Senator come to the floor duce pollution, reduce global warming, ads explicitly claim—is false. of the Senate and suggest soccer moms reduce lung cancer, to improve the ‘‘The fact of the matter is, you might have are going to have to get into golf carts health of asthmatics and of our sen- to use some of this improved fuel efficiency and drive down the road in a string of iors? Do we want to vote that we can to improve economy rather than increasing golf carts just defies imagination. It is performance, but certainly it doesn’t mean have a car that is competitive with that you couldn’t have an SUV,’’ Adrian incredible. Japan and Germany and allows our Lund, chief operating officer of the Insur- Let me point out to the Senator from workers in Detroit, and elsewhere in ance Institute for Highway Safety and a Arizona—because I only showed part of this country, to continue to be em- member of a blue-ribbon panel that studied the distortion of these charts—the Big ployed in this Nation in a competitive the issue for the National Academy of Three presented a car assessment to industry that is moving into the future Sciences last year. the committee. But, again, they used and offering America the cars of the fu- I wonder if the Senator realizes how highly selected vehicles when they did ture? important that statement is from a it. They excluded some cars in order to That is what this vote is about. It is chief operating officer of the Insurance provide a skewed picture. The Big a straightforward vote about the future

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1761 of our country in many different re- are trying to flatten out the transpor- debate this afternoon that I read his gards. I hope our colleagues will simply tation demand so it doesn’t increase so amendment—that is always a dan- not be intimidated by this onslaught of dramatically, and that will flatten out gerous thing to do in the Senate; very money that is buying advertising time the top line. few of us read the amendments on to scare Americans based wholly on There is another chart I want to which we vote, but I did. I read the some fanciful and totally distorted ar- show to explain why we are trying to amendment. gument that has no basis in science deal with fuel efficiency as part of this It has some of the most unusual pro- and, most importantly for our debate, bill. Let me put that up. This is a chart visions I have encountered in the Sen- in truth. that came out of the National Acad- ate. It has what are called expedited I yield the floor. emy of Sciences study, which has been procedures. It says, first, if this amend- The PRESIDING OFFICER. The Sen- referred to so many times by Senators ment is adopted, that the Secretary of ator from New Mexico is recognized. LEVIN, BOND, MCCAIN, and KERRY. It Transportation would have 6 months to Mr. BINGAMAN. Mr. President, I shows what has happened to passenger issue proposed CAFE regulations on wish to speak for a few minutes on be- and light truck fuel economy between passenger automobiles. Then he would half of the position that the Senator the years 1965 and 2000. You can see have 2 years for final regulations to be from Massachusetts and the Senator that between 1965 and about 1975 noth- issued. He would have 15 months to from Arizona have articulated and in ing happened. The miles per gallon of issue final CAFE regulations on non- opposition to this amendment Senator new passenger and light truck vehicles passenger automobiles. LEVIN and Senator BOND have proposed. coming onto the market was just flat. If the Secretary goes ahead and I want to start by asking the real That is the red line and the green line issues something in the way of regula- basic question, which may be obvious over at the left. They are flat. Then tions, then that is the end of it. It is to a lot of folks, but it seems basic to you see a dramatic increase between pretty clear in the amendment. Those me, that is, why are we even dealing about 1976 and 1985 or 1986. You see a become the law. with the issue of vehicle fuel efficiency dramatic increase for the top line, new If, on the other hand, he fails to meet as part of an energy bill? Some people cars, and the next line down is new those deadlines in 2 years from now—2 might say energy involves drilling light trucks. So you can see that all of years from the effective date of the wells, not vehicle fuel efficiency. But it those have gone up substantially dur- act, so perhaps if we actually pass an seems to me there is an answer to that. ing that time period. energy bill, that might be 2 years from Let me get one of these charts up and The real issue, and the important this summer or 2 years from this fall— I can make the point I am trying to thing about this chart, is what happens if the Secretary fails to meet those make. This first chart, which I showed from about 1989 until the present. The deadlines, the Congress can pass a bill earlier in the debate on the energy bill, reality is that we have stagnated. under expedited procedures to override tries to talk about U.S. oil consump- There has been no improvement in this what the administration has deter- tion, because we give a lot of speeches country in corporate average fuel econ- mined. on the Senate floor about how we want omy for vehicle fuel efficiency since The expedited procedures dramati- to reduce our dependency on foreign 1989. In fact, for the entire fleet, it has cally limit what we are able to do. Ba- oil, we want to be more efficient in our declined. We are actually less efficient sically, they tell us what the title of use of foreign oil, we want to consume in our use of gasoline today than we the bill is going to be, for any bill to less. were in 1989. override the regulations; they tell us Well, this is consumption. Millions of That is why it is important as part of precisely that we are limited in the bill barrels of oil are consumed per day in a comprehensive energy bill that we to inserting a particular CAFE miles- this country. You can see the top line try, once again, to address corporate per-gallon number, and a year, and sub- is for total oil demand. The total oil average fuel efficiency; that we, once stituting that for what the administra- demand has been going up. The line again, try to put in law some require- tion has come up with, and it limits us that comes down on the right-hand side ment. to four amendments in the Senate, two of the chart is for the years 2001 and What is at stake in this amendment to be offered by the majority leader, 2002. You can see that the projection that Senator LEVIN and Senator BOND two to be offered by the minority lead- for the remainder of the time covered have brought to the floor? The under- er, and four amendments in the House by this chart—up to 2020, the next 18 lying bill, the bill before us, sets a fig- of Representatives. years—for the remainder of that time ure. It tries to say: Let’s become more I have been around here a long time, oil consumption in the United States is efficient, and here is the goal, here is and I have never seen the ability of the expected to increase very substan- the target, here is what we need to try Senate to amend and consider legisla- tially. to do. tion in a flexible way so constrained. You may ask, why is it increasing so Very simply, what we have in the That is what the amendment proposes, much? It is obviously increasing be- Levin-Bond amendment is an elimi- and that is what Senators will be sign- cause of the transportation demand. nation of that goal, an elimination of ing on to if they decide to support the When we talk about the transportation that target. It sets up a procedure amendment. demand, we are talking about gasoline. which kicks the issue back to the ad- I urge any Senator who has an inter- The oil comes in, we refine it, turn it ministration. est in the procedures of the Senate and into gasoline, put it in our cars, our The administration has been very has concern about limiting the ability SUVs, and in our trucks, and that is outspoken about the fact that they op- of Senators to offer amendments to what is driving total oil demand up and pose the provision in our bill. The read the amendment in some detail. up and up. People say, well, why in the President has opposed it; the adminis- The amendment does, as I say, elimi- world are we importing more than half tration has opposed it; the Secretary of nate any specific number. There is no of the oil that we are consuming? Energy opposed it. They do not think number as to what CAFE standard we The truth is, domestic production of we should be mandating anything in hope to get to in the future. oil peaked in 1970. It has been going law in the way of improved efficiency As I see it, this is something of a test down ever since. Whether we open in cars, trucks, and SUVs. in the Senate as we deliberate on these ANWR or not, it will continue, over the This amendment would kick it back issues. The test is: Can we, as a coun- long term, to go down because we have to the administration, to NHTSA, as it try, as a Government, as the Senate, do 3 percent of the world’s reserves of oil. is always referred to—the National anything significant to increase fuel So we need to also look—in addition to Highway Transportation Safety Ad- efficiency when gas prices are as low as production—at consumption. That is ministration—and have them study they are? what this chart tries to do. That is why this issue and come up with a set of The last time we acted, let’s face it, we are dealing with vehicle fuel effi- regulations. we acted because there was a real crisis ciency. We are trying to flatten out Quite frankly, when my colleague, in the Middle East—in the seventies. that top line, total oil demand, so it my good friend from Michigan, Senator People were shocked into realizing that doesn’t increase dramatically, and we LEVIN, urged at the beginning of this dependence on foreign sources of oil

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1762 CONGRESSIONAL RECORD — SENATE March 12, 2002 was a problem for us. Today that is not The first thing that is wrong with this omy obviously needs those jobs. It that big a problem. One can buy a tank is, in another 10 or 11 years many of us would reduce the rate of economic of gas in Albuquerque for $1.12 a gallon. are not going to be here, so we are not growth by as much as $170 billion over It is hard to get people worked up going to be held accountable, because the next 20 years, according to the En- about the continued addiction we have the goals we set today and our ability ergy Information Administration, and to cheap gas under those cir- to achieve them in 10 or 11 years are cost several thousand additional deaths cumstances. Nobody thinks too much fraught with an awful lot of inconsist- and tens of thousands of injuries in the about it. encies based particularly on past his- coming decades. As to the argument that soccer tory. We talk a lot about safety. Common moms are going to be disadvantaged, The CAFE programs have led to an sense dictates that a larger and heavier the Senator from Massachusetts has increase in fleet average fuel economy automobile will be safer in an accident. talked about that. from 13 miles per gallon in 1975 to 22 Yet it is clear there is no possible way I am persuaded that Ford Motor miles per gallon in 1987. to meet the drastic increase in fuel Company can make an SUV that is fuel The 1987 fleetwide fuel economy stag- economy requirements proposed by the efficient. They can make a pickup that nated as consumers shifted their pur- Kerry amendment without reducing is fuel efficient. Each of the other chase patterns to light trucks and the size and weight of vehicles. That is major manufacturers can do the same SUVs that were covered by the lower just a fact. thing. I do believe we need to focus CAFE standards. The Energy Information Administra- their attention on that as a priority, Starting in 1995, the Congress—— tion conducted an analysis of the Kerry and that is what the underlying legis- Mr. KERRY. Will the Senator yield proposal. The EIA found the average lation is trying to do. for a question? weight of passenger cars and light As to the argument that U.S. manu- Mr. MURKOWSKI. I prefer to go trucks produced to meet CAFE stand- facturers are going to lose jobs, I think ahead with the rest of my statement. I ards would be substantially reduced: a it is sad that we have lost such con- will be happy to yield for a question decrease of 640 pounds for passenger fidence in U.S. industry and U.S. inge- upon the completion of my statement. cars and 850 pounds for light trucks and nuity that we are claiming we cannot Starting in 1995, the Congress pre- SUVs. Even with the reasonable as- do this, this is an impossible mountain vented changes in fuel economy stand- sumptions and availability of advanced to climb, our manufacturers cannot ards for all vehicles. Such restrictions vehicle technology, this is, in my opin- possibly be held to this kind of enor- were lifted starting with the model ion, a dangerous downsizing of auto- mous standard. year 2004. In 1992, the Senate marked mobiles. When President Kennedy challenged up a bill with CAFE, I might add, and EIA’s analysis suggests it is simply the country to put a man on the Moon, ANWR, and dropped it in conference. impossible to attain 35 miles per gallon it is fortunate we were not tasking the The only thing we got out of that was by 2015 at any cost. That is a pretty automobile industry to do that. They low-flush toilets. That was the trade- broad statement, ‘‘impossible to attain would have come back, I am sure, and off: We traded off ANWR and we traded at any cost.’’ indicated it was just totally impos- off CAFE and got low-flush toilets, To get beyond 30 miles per gallon in sible. some of which are not quite up to the that same time frame, even more re- The country can meet this challenge. duction of weight would be necessary. job. We can produce more energy, and we Tomorrow I will speak a little bit In study after study, safety experts have many provisions in this bill to try more about this issue. I, again, remind have concluded that reducing the to do that. But we can also use the en- Members of the fallacy of setting goals weight of vehicles leads to higher fa- ergy we have in a more efficient way, talities and injuries. Using the same and not being present to be held ac- and part of that is through vehicle fuel relationship used by NHTSA in the efficiency. We need to do something countable. We are familiar with the amendment, studies of automobile size and weight, significant in this area. that it would conduct a multiyear rule- and passenger injuries, we come up I hope the Levin-Bond amendment is with a recognition that weight reduc- making. It would provide new spending not adopted because it does take the tion resulting from the Kerry CAFE authorizations for advanced vehicle teeth out of the legislation in terms of proposal could very likely lead to an technology research and development any real requirement for improved effi- additional 15,000 deaths and 65,000 inju- and that it would require the Federal ciency. ries in the next 10 years. I do not question anyone’s motives. I Government to purchase hybrid and al- I find it somewhat ironic that some am just telling you that the effect of it ternative-fuel vehicles and use alter- Members of this body who demand en- will be to essentially say: Status quo is native fuels. When combined with the vironmental regulations regardless, fine; the administration can study this considerable tax incentives for ad- even if one person, one animal, or one for a couple of years; if the President vanced fuel technology that is in the fi- plant is threatened, now stand before decides there is something that ought nance package, why, what we see in the us with a fuel economy proposal which to be changed in current law, he can Levin-Bond amendment offers a sen- will undoubtedly kill thousands of propose that in regulation; otherwise, sible way to achieve fuel efficiency American drivers in the coming years Congress should back off. gains and reduce our dependence on because of these lighter cars and injure That is a sad signal to send, and I foreign oil. It does so in a way that tens of thousands more. hope we do not send that message. I would not hurt the U.S. consumer. It These are the same Senators who urge my colleagues to vote against the would not increase vehicle costs to worry about the threat to caribou from amendment when it does come up for a consumers and protect American jobs exploration activities in ANWR, and I final vote. as well as American lives. get a little befuddled. Are they the The PRESIDING OFFICER. The Sen- By comparison, my reading of the un- same ones who now propose what a ator from Alaska. derlying Kerry proposal would increase USA Today article in 1993 called Mr. MURKOWSKI. Mr. President, I the cost of new trucks and SUVs by as ‘‘Death By The Gallon″? listened to the debate carefully, and I much as $1,200. This is according to the We are all entitled to our opinion, appreciate the points that have been National Academy of Sciences. If we but are we somehow to believe our col- made by my good friend, the chairman cannot trust them for objectivity, I do leagues want us to, perhaps, put car- of the Energy Committee. I remind all not know who we could trust. ibou first rather than put people first? those who are following the debate It would limit consumer choice by What I have behind me is a chart that it is relatively easy to set targets forcing automakers to produce smaller from the National Academy of of achievement, and in this particular vehicles that do not perform nec- Sciences, and I think it deserves to be bill we have set the year 2013 in which essarily to all the consumer needs. It quoted. This is from July 2001. A re- to achieve 35 miles per gallon under would lead to the loss of, as we have view of the CAFE program found the CAFE. We are now roughly at 24. seen in the debate, several hundreds of following: Our past experience with setting thousands of jobs for hard-working In summary, the majority of the com- these kinds of goals is not very good. Americans at a time when our econ- mittee finds that the downsizing and weight

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1763 reduction that occurred in the late 1970s and Under the Kerry proposal, auto- that would lead to substantial job loss for early 1980s most likely produced between makers will be unable to produce American workers in the auto industry. 1,300 and 2,600 crash fatalities and 13,000 and minivans and SUVs large enough to The Chamber of Commerce: 26,000 serious injuries in 1993. meet the needs of the average Amer- The proposal would dramatically affect the Mr. KERRY. Will the Senator yield? ican family. It is not just families and functionality and performance of vans, pick- Mr. MURKOWSKI. I will be happy to SUVs. What about a farmer who needs up trucks and sport utility vehicles that yield at the conclusion of my state- to haul hay? Will he buy a pickup businesses and consumers rely upon. ment. truck with a 4-cylinder engine? Cer- The AFL–CIO: That is 26,000 to 52,000 additional tainly not. What parent driving a car- deaths since 1980 and nearly a half a The proposed increase is too high and too pool will be willing to make multiple quick, exceeding even the most optimistic million additional serious injuries due trips to pick up half a dozen kids after projections by the National Academy of to too-rapid increases in CAFE stand- school? What recreation enthusiast Sciences. ards. will buy a truck or SUV that will not And finally, the Insurance Institute Why is this? Well, again we have the tow a boat or RV on a weekend vaca- for Highway Safety: National Academy of Sciences, and tion? What construction worker, la- they said it best. Again, I refer to this Any fuel conservation measure that in- borer, or contractor will buy a vehicle creases the use of light cars will do so at a chart: that requires several trips to haul tools cost of unnecessary crash deaths and inju- An increase in fuel economy is affected by and materials? Without choices for new ries. a system that encourages either downweighting or the production and sale of vehicle purchases, consumers will be That is the analysis, Mr. President. more small cars. Some additional traffic fa- far more likely to hold on to their ex- And now national security. If it was talities would be expected. isting vehicles, thereby making fuel clear that the Kerry CAFE proposal EIA’s analysis predicts this will hap- economy gains even less and less likely would guarantee energy independence pen, even as we fall short of reaching and increase our dependence on foreign or substantially reduce our need for the aggressive 36-mile-per-gallon fleet oil. The end result will be somewhat foreign oil, we might be willing to bear average. If CAFE standards are in- catastrophic to our already struggling its harsh costs. The reality is, CAFE creased dramatically over too short a U.S. auto industry. standards have provided few, if any, of period of time, automakers will have The Kerry proposal reduces auto the security benefits promised by the no choice but to downsize and sales by 220,000 in 2010 and 604,000 in proponents. There is little reason to downweight their cars and trucks to 2015. Automakers will also suffer stiff believe that further increases in CAFE meet the standard. fines, up to $40 billion over the next 20 will provide any national security ben- Rather than choosing an arbitrary years for failing to meet new CAFE efit. number, or Senators engaging in a bid- standards. The CAFE program was introduced 25 ding war for the endorsement of—well, Fewer sales suggest reduced profit- years ago with the intention of reduc- I say the environmental lobby, because ability. This adds up to fewer jobs. EIA ing U.S. oil imports and consumption. they are the ones behind this pri- suggests job losses of 207,000 in 2010 and Yet today we import more foreign oil marily—should we not instead rely on 435,000 in 2015. Shouldn’t a good energy than ever and our gasoline consump- the expertise of the engineers at policy create jobs rather than destroy tion is at an all-time high for a very NHTSA to balance the competing con- them and put people out of work? simple reason. We have a high standard This chart shows jobs in the United cerns of fuel economy, passenger safety of living in this country. We have no States auto industry through the coun- costs, and consumer needs? In spite of other mode of transportation to gen- try. In Texas there are 318,000. New our efforts to generate consensus at a erate movement of individuals other Mexico has 21,000. Massachusetts has town hall meeting that is this Senate than oil. The world moves by oil. 117,000. Need I say more? America moves by oil. The planes do debate, this type of technology de- America’s auto industry drives the not move in and out of here on hot air. mands engineers who know what they economy in all 50 States, including my The reasons are simple. While pas- are talking about. home State of Alaska. The automobile senger car fuel economy has doubled The Levin-Bond approach lets the ex- industry is one of the Nation’s largest, and light truck fuel economy has in- perts, not the politicians, determine 6.6 million jobs directly or indirectly creased by over 50 percent, the CAFE the maximum feasible fuel economy in- created. For every autoworker who program has had no effect on any other crease. Not only does the Kerry CAFE loses his or her job, seven others are proposal put the American driver at lost in related industries: Steel, iron, factors that determine our transpor- risk, but I think it puts our economy textiles, plastic, and so on. Certain tation fuel use: the size of the vehicle at risk as well. It should be obvious States, some whose Senators support fleet, which is dictated by our popu- that technologies needed to increase this amendment, would be hardest hit. lation; how vehicles are driven, includ- fuel economy cost money and increase In Michigan, over a million; in Ohio, ing vehicle miles traveled in a calendar the purchase price of a vehicle. The half a million; in California, 492,000; in year; and the kind of vehicles con- EIA estimates a cost increase of $535 Illinois, 312,000; in New York, 274,000. sumers call for. per passenger car and $961 for light Imagine factories shutting, whole In each survey of consumer pref- trucks and SUVs to get to 30.2 miles towns wiped out, all the jobs in any of erences, safety, performance, comfort, per gallon. Without a dangerous reduc- these States eliminated overnight— and utility rank above fuel economy in tion in weight, the NAS estimates a moved overseas, as foreign automakers determining what vehicles are pre- cost increase of $690 for passenger cars gain an increasing share of the U.S. ferred. Automakers currently offer 50 and $1,200 for light trucks and SUVs to automobile market. different vehicle models that get 30 reach 30.5 miles per gallon. We have quotes from labor busi- miles per gallon or better, but the 10 If the Kerry proposal is adopted, I nesses, safety experts, and so forth. It most fuel-efficient vehicles make up think Americans can look forward to is no small wonder that the American only 11⁄2 percent of the sales. getting less car for more money. EIA workers, the United Auto Workers, This suggests that the American con- projects that passenger car horsepower AFL–CIO, the American Iron and Steel sumer is making a determination of his will decline by 24 percent and light industry, oppose the Kerry proposal. So or her choice and that choice is not truck horsepower, approximately 18 does the American Chamber of Com- made necessarily on fuel-efficient vehi- percent. Smaller, less powerful vehicles merce, American businesses, the Busi- cles but on other considerations: Safe- with fewer features, this is not what ness Roundtable, the Associated Build- ty, comfort, and so forth. the American consumer wants. ers and Contractors. They support As we look at this chart which shows That is not reflective of the standard Levin-Bond as a way to improve fuel passenger car and light truck sales by of living we have in this country. Fam- economy without sacrificing hard- State, we can see the States whose 2000 ilies, especially those with children, working American jobs. new light truck registrations are 60 want larger and safer vehicles, and The United Auto Workers say: percent or over are in the green. These most drivers want utility and comfort It [Kerry-McCain] calls for excessive, dis- are the western areas that have to as well. criminatory increases in CAFE standards drive farther. The blue States are those

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1764 CONGRESSIONAL RECORD — SENATE March 12, 2002 whose 2000 new light truck registra- consumption. I want to go back and fuel economy model, it is an economic tions are 50 to 59 percent, and the oth- show what happened to the Alaska pro- model of the U.S. energy system which ers are States where new light truck duction, represented by the blue line, has a series of statements about pric- registrations are 49 percent or under. from 1973 to 1999—clear across the ing and efficiencies that it does not In 36 States, consumers favor light board. take into account? trucks. That is just the harsh reality During this period from 1973 to 1999, Mr. MURKOWSKI. Account, if I may, between passenger cars and light you see the production of Alaskan oil of what? trucks. in blue starts and goes up and comes Mr. KERRY. Specifically, I quote Again, it is a matter of choice. Con- across. The interesting thing is some- from the study. The study says that sumers have voted with their wallets. thing happened in 1977. You see that predicting energy prices depends on Sales of light trucks and SUVs surpass big jump that occurs? What happened events that shape energy markets that sales of passenger vehicles in 36 out of is we came on line with Prudhoe Bay. are ‘‘random and cannot be antici- 50 States. In 1980, light trucks and It made a tremendous difference. pated.’’ SUVs comprised only 17 percent of What happened in the red chart when Mr. MURKOWSKI. That should not sales, and now they are more than half. we did that? This is what we were im- prevent us from trying to predict fu- Consumers have chosen performance porting in the early 1970s. We were im- ture events, should it? I would say that and features over fuel economy and porting somewhere in the area of 6 mil- statement, in general terms, is con- fuel savings. Analysis suggests this lion barrels a day. It suddenly dropped. sistent with the reality that the price trend will continue. It dropped dramatically because we in- of fuel is primarily controlled by OPEC Even with CAFE, petroleum demands creased domestic production in this through their cartel and they have set are expected to increase by 25 percent country. a floor and set a ceiling. The floor is to more than 25 million barrels per day I am tired of hearing arguments that $22; the ceiling is $28. They have ex- in the year 2020. The actual petroleum say, if you bring on oil from ANWR, it ceeded that. Any time they have fallen saved by higher CAFE standards, ac- will not make a difference. It will below that, they have quickly reduced cording to EIA, is roughly 1.3 million make a dramatic difference, and this is the supply and the price has gone up. barrels per day, about the same as we proof. So that is what controls the price of can produce from ANWR during the What did we bring on at that time? fuel in this country. It is OPEC. Mr. KERRY. But it did not take into same period. While production of do- We brought an additional 2 million bar- account what the benefits might be if, mestic oil from ANWR and Alaska rels on line. That is what we brought in in fact, that happened again and we would obviously reduce foreign oil im- during that period, right in there. went back to the 1973 situation. So in ports, higher CAFE standards may not. When you see the significant drop in effect the study does not take into ac- Instead of reducing the need for crude the red line, that is why it happened. If count the potential of that major price oil, high CAFE standards reduce the we can open up ANWR, we will see the same drop in imported oil. It will not differential. needs for gasoline and diesel. Rather But much more important, is the relieve us, but it will make a dif- than reduce our dependence on Persian Senator aware that the list of tech- Gulf crude oil, higher CAFE standards ference. I yield for a question to my friend nology on which the assumption is would reduce the needs for import of based, that you cannot meet 35 miles these products primarily from Canada from Massachusetts. The PRESIDING OFFICER (Mr. per gallon, is a very different list from and the Virgin Islands. Clearly, the na- the list of technology available under tional security threat due to our de- REED). The Senator from Massachu- setts. the National Academy of Sciences? pendence on Middle East oil remains, And is the Senator also aware that the even with CAFE. Mr. KERRY. Has the Senator finished? study assumes that you include all Finally, by fostering the use of ad- 8,500-pound vehicles, which we do not vanced vehicle technologies, expanding Mr. MURKOWSKI. Yes. The PRESIDING OFFICER. The Sen- include? So if you take out the 8,500- alternative fuel use, the Levin-Bond ator from Alaska yielded for a question pound vehicles, the study of the Sen- approach to fuel economy will reduce to the Senator from Massachusetts. ator is completely inapplicable. our dependence on foreign oil, create Mr. KERRY. If the Senator has fin- Is he aware of that, that we do not hundreds of thousands of new jobs, pro- ished, I want to claim the floor, and have 8,500-pound vehicles in our protect American families and workers then I will ask a question, if I may. posal? from injury or death, provide con- Mr. MURKOWSKI. I will be happy to Mr. MURKOWSKI. I don’t think the sumers with vehicle choice they need, respond to the question now. Senator from Massachusetts has of- and increase economic growth. The PRESIDING OFFICER. Does the fered his bill as yet, so we do not know In contrast, in my opinion the dra- Senator from Alaska yield the floor? what is in it. What we do know is the matic and ill-advised increase in CAFE Mr. MURKOWSKI. No, but I will be EIA’s projections are not statements of standards proposed in the underlying happy to yield for a question. what will happen but what might hap- bill will hardly make a dent in our im- Mr. KERRY. Mr. President, I will ask pen, given known technologies, current ports of foreign oil and do nothing to the Senator a number of questions, if I technology, demography, and the ensure our national security, throw might. trends in current laws and regulations. hundreds of people—thousands of peo- First, the Senator quoted a study. It We had EIA analyze the proposal as it ple—on the street, out of work, and is the EIA study. The Senator quoted a was at the time of our request, several lead to tens of thousands of new deaths study and suggested the study says you weeks ago, and before the Senator from and crippling injuries on the roads of cannot reach 35 miles per gallon. Massachusetts made his changes. America; deprive workers and small Is the Senator aware that the study I find the argument the Senator from businesses of their vehicles they need did not analyze the Kerry-McCain sub- Massachusetts makes on technology to to go about their daily lives, and po- stitute at all, which seeks to get 36 be interesting: on one hand, he is sug- tentially make the difference between miles per gallon but with a cushion for gesting the technology is likely to economic growth and prosperity or eco- trading? Is he aware that was not even occur for vehicle efficiency, but, on the nomic gloom and recession. analyzed? other hand, I am promoting ANWR, Clearly, the Levin-Bond amendment Mr. MURKOWSKI. Yes, this Senator saying technology advancements will is a better way forward to truly im- was aware of that. We asked for an allow us to do it safely. He dismisses prove the economy. I intend to vote for analysis of the bill as it was at the technology on one hand and promotes it, and I encourage my colleagues to do time of our request. it on the other. I happen to believe the same. Mr. KERRY. So in effect we have a that technology is applicable in both I would like to show one chart in proposal on the floor that the study of areas. conclusion. This was as a consequence the Senator does not address at all, or But what I find objectionable is the of our discussion earlier about what a we will have a proposal. idea of setting a goal in the year 2013, difference the increase in domestic pro- The second question: Is the Senator or thereabouts, and not being held ac- duction means relative to our overall aware the model he referred to is not a countable. It is very easy for Members

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1765 to say let’s go ahead and vote for the 35 Mr. MURKOWSKI. The question is a Mr. KERRY. Mr. President, let me or 36 miles per gallon, because we are matter of choice for the American pub- say to the Senator that is their first re- not going to be here to be held ac- lic in purchasing these hybrids. They port. Let me say that over the course countable for it. The experience we had can purchase them now. You can go of the next 15 years, given the tech- has been disastrous, relative to meet- out and get a car that gets 50 miles per nologies that are available to us, you ing these goals, because obviously the gallon if you wish. have the reliability to bring on line a American public has a certain concern Mr. KERRY. Mr. President, I appre- car that can tow any size boat, and the about what they want to buy. It is as- ciate the Senator mentioning $1,200. vehicles you need for that fall outside sociated with a standard of living. It is That is an accurate statement of the the CAFE standard because of weight— associated with the advancement, obvi- up side cost that is talked about in the this perfect capacity to have all the ously, in technology. National Academy of Sciences report. towing you want, all the carrying ca- Mr. KERRY. Let me say to my friend They also talk about the low side of pacity, and all the lift capacity and from Alaska, first of all, I would ask $500—so, $500 to $1,200. I accept that. He still drive a more efficient vehicle. But him to speak for himself as to whether is absolutely correct. It will cost a lit- I also want to ask the Senator—he said or not—I know he does not intend to be tle bit more. But what he doesn’t say we are going to lose safety. I want to here in 12 or 13 years, but a lot of other and what they never say is that the have the Senator from Illinois have a of my colleagues do. savings in gasoline over the life of the chance. He mentioned safety. Second—— car pay for the cost. Moreover, we are Mr. MURKOWSKI. Mr. President, I Mr. MURKOWSKI. I just might be prepared to give a tax credit. have the floor, as the Senator from here. Is the Senator aware that Ford Motor Massachusetts is aware. Mr. KERRY. If I may say to my Company executive, John Wallace, said Mr. KERRY. Mr. President, if I may, friend from Alaska, who may be—on in an interview that with a $3,000 tax the Senator said we will lose the safe- this subject of this technology—I com- incentive for the purchase of the gas- ty. He quoted the National Academy of pletely accept the technology. I am not electric hybrid, that would solve the Sciences. Is the Senator aware that the arguing about the technology avail- problem of profitability and they would National Academy of Sciences said spe- ability in Alaska. That has nothing to be profitable immediately with the cifically on page 70 of the report that it do with the Alaska argument. It is a Ford Escape? Is the Senator aware that is technically feasible and potentially question, not about technology, it is a Ford Motor Company says they can be economic to improve fuel economy question about good energy policy. profitable immediately with the tax without reducing vehicle weight or That is another debate. It will happen credit which we are going to pass? size, and therefore without signifi- Mr. MURKOWSKI. I wonder if the in the next few days. But I say to my cantly affecting the safety of motor ve- Senator from Massachusetts is aware friend from Alaska, with respect to hicle travel? that in order for the car to basically technology, these are technologies that Is he also aware that the most impor- amortize the cost of saving gasoline, are currently available. They are not tant entities in this country with re- the individual would have to keep that taken into account in the study. spect to safety—Public Citizen and the The National Academy of Sciences car about 14 years. The American public is not of a mind to keep a car that Center for Auto Safety—are both op- has listed these technologies. The posed to the Levin amendment and study he cites does not even take into long. Mr. KERRY. That is not my ques- support the effort to have CAFE stand- account hybrids. tion. With a tax credit, is it profitable ards for a safety basis? My friend from Illinois has a chart immediately? I want the Senator to hear this, if I over there—I had it over here earlier— Mr. MURKOWSKI. One could argue may. that shows what can happen with hy- that it is profitable because a tax cred- Mr. MURKOWSKI. I assumed the brids. You bring a hybrid SUV on line it is a subsidy. Senator from Massachusetts was going and you get double the mileage. The Mr. KERRY. That is only to bring it to ask me a question. study doesn’t even take that into ac- on line. The Senator said you can’t be Mr. KERRY. I asked the question. I count. profitable. want to supplement the question. I Mr. MURKOWSKI. Let me respond to Mr. MURKOWSKI. I quoted the Na- want to see if the Senator is aware of the last question, if I may. The same tional Academy of Sciences, and the this finding. This is Public Citizen: National Academy of Sciences study on Senator from Massachusetts is arguing The industry’s primary support for its po- which the Senator bases his legislative the point that it wasn’t included in his sition comes from a highly controverted proposal, with new technologies, has particular amendment. study by the National Academy of Sciences, estimates of cost and impact as in the Mr. KERRY. Actually, the National which, in turn, based its conclusions on re- EIA study. I think what the Senator is Academy of Sciences—I have the report search by Charles Kahane of the National suggesting is the use of additional right here—says specifically that with- Highway Traffic Safety Administration. technologies which EIA believes are out the cost, without loss of jobs, and The data used in the study are from 1993 and, therefore, fails to reflect advances in not necessarily cost efficient. without loss of safety, you can have a passenger protection, such as dual airbags Higher CAFE standards means higher car that increases fuel efficiency up to and head injury protection. costs. Data from the National Academy 37 miles per gallon. That is what the The study misleadingly held crash- of Sciences make this clear—$690 more National Academy of Sciences says. worthiness protection constant, despite the for passenger cars at 33.5 miles per gal- They don’t tell you you have to do fact that many lives could be saved by design lon, and $1,260 more for light trucks that, but they say you can do it. It is changes and cost-effective safety improve- and SUVs at 27.5 miles per gallon in technologically feasible today. So you ments. 2015. The Energy Information Adminis- can, in fact, do that. Mr. MURKOWSKI. I would be happy tration clearly says cost is going to be Mr. MURKOWSKI. I think the Sen- to respond. higher—$535 for passenger cars and $961 ator from Massachusetts has to be Mr. KERRY. There are additional for light trucks and SUVs. careful in his generalities because the findings. In fact, the finding of the Na- The Senator from Massachusetts can Ford Escape isn’t a real SUV. I under- tional Academy of Sciences is that it argue the point, but I suggest he argue stand its towing capacity is only 1,000 would not affect safety. That is, in with the National Academy of Sciences pounds. That means you can’t really fact, the current finding. or EIA. tow your boat to where you are going Mr. MURKOWSKI. If I may respond, Mr. KERRY. Mr. President, again to launch it because it is simply not this comes from the National Academy there is nothing to argue about with heavy enough, if indeed it can only tow of Sciences. It reads as follows: the National Academy of Sciences be- 1,000 pounds. Contrary to recommendations, the NAS re- cause they did not take it into account The Senator from Massachusetts can port says that the proposal establishes both either. But they acknowledge it. They argue the point. But it is either fact or unreasonable targets and unreasonable time- acknowledge they did not take into ac- fiction. Is the Ford Escape a real SUV, tables. count hybrids. My colleague has not or a mini-SUV, and is it limited to a According to the NAS report, tech- answered the question. certain load area? nology and changes require a very long

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1766 CONGRESSIONAL RECORD — SENATE March 12, 2002 time to be introduced into the manu- Mr. LEVIN. Will the Senator from through now is a matter of educating facturer’s product line, which I think Alaska yield for a question? Members. Because it did not occur in paraphrases what the Senator from The Senator from Massachusetts is the Commerce Committee, it did not Massachusetts said because he said it taking the NAS study. occur in the Finance Committee, and it will take time for the minivan, if you Mr. MURKOWSKI. I noticed that. certainly did not occur in the com- will, to evolve into what we would all Mr. LEVIN. In the same breath, the mittee of jurisdiction, the Energy and like, and that is a multipurpose Senator from Massachusetts says NAS Natural Resources Committee because minivan. found an increasing safety standard, the majority leader saw fit to pull it They further go on to say that tech- and that his proposed level will not af- from the committee in October. nology changes require a very long fect safety. There was no such finding I think the Senator from Massachu- time to be introduced. Any policy that by the NAS. setts is well aware of why it was is implemented too aggressively—that Would the Senator from Alaska pulled. It was pulled because we had is, too short a period of time—has the agree? the votes to vote out an ANWR amend- potential to adversely affect manufac- Would the Senator from Alaska agree ment, which would have put us in a po- turers, their suppliers, their employ- that when the NAS said that it is tech- sition, as we debate the energy bill, of ees, and consumers. nically feasible and potentially eco- not having to come up with 60 votes, as The NAS report says further: nomical to improve fuel economy with- the Senator from Massachusetts has But it is clear that there were more inju- out reducing vehicle weight or size, threatened in his filibuster statement ries and more fatalities than otherwise and, therefore, without significantly that he is going to filibuster the ANWR would have occurred had the fleet in recent affecting the safety of motor vehicle years been as large and heavy as the fleet of amendment. the mid-1970’s. travel, they were not talking about in- But from the standpoint of equity creasing fuel economy to the Kerry Those facts are on the basis of experi- and fairness, what we have not had an level? ence. opportunity to do within the Energy Mr. MURKOWSKI. That is correct. Committee is to have amendments To the extent that size and weight of the Mr. LEVIN. They were just simply fleet have been constrained by CAFE re- come up, develop a bill, and vote it out. quirements, the current committee con- saying, it is possible to increase fuel And it was done for one specific reason. cludes that those requirements have caused economy. You might be able to in- And it was done very early. This was more injuries and more fatalities on the road crease fuel economy by 1 mile per gal- done back in October. So we did not than would otherwise have occurred. Recent lon without affecting safety. They did work, in the Energy Committee, on a increases in vehicle weight, while resulting not reach a conclusion there. This line bill so that we would have a consensus in some loss of fuel economy, have probably has been quoted—— of both Democrats and Republicans as resulted in a reduction of motor vehicle Mr. KERRY. Will the Senator yield? crash deaths and injuries. we address some of these complex The PRESIDING OFFICER. The Sen- issues. This is in the NAS report, page 2–29. ator from Alaska controls the time. Mr. KERRY. Mr. President, the Sen- So from the standpoint of not having Mr. LEVIN. Mr. President, I am ask- time, we are all in the same boat, only ator hasn’t answered my question. I ing the Senator from Alaska a ques- agree with that. I know exactly what I think it is fair to say the Energy tion. they say with respect to that. But he Committee really took it in the shorts, Does the Senator from Alaska agree if you will pardon the abbreviation. hasn’t acknowledged that the findings that the National Academy of Sciences of Public Citizen and the Center for Mr. KERRY. Will the Senator yield does not specify what increase in CAFE for a question? Auto Safety point to the fact that the would be possible in a way which does analysis on which the conclusion was Mr. MURKOWSKI. For a question. not affect, in a negative way, safety? Mr. KERRY. Mr. President, I ask the based is flawed because it is not based Would the Senator from Alaska agree Senator, in his memory here—he has on current safety capacity. It is not with that? been here quite a while—is it not fair based on dual airbags. It is not based Mr. MURKOWSKI. Absolutely. That and accurate to say that when the Re- on lighter materials. It is not based on is my understanding. publicans were in control, the majority new technology. It is based on what I ask the Senator from Massachu- leader, on a number of different occa- happened in the transition. I want to setts, is there a committee report on sions, did exactly the same thing? Is explain why it happened. the proposal, the Kerry proposal? And Mr. MURKOWSKI. Isn’t it based on a that fair? has the Commerce Committee given historical evaluation of what has hap- Mr. MURKOWSKI. I am so pleased any views on the proposal? pened? And so it is factual in relation- the Senator from Massachusetts—— Mr. KERRY. No. Mr. President, no ship to actual statistical information. Mr. KERRY. Is that accurate? Mr. KERRY. Let me again say what there is none. Mr. MURKOWSKI. Has asked that it relates to. Mr. MURKOWSKI. Is there a reason question because it is totally inac- Specifically, the data used in the why that has not occurred? curate. The Republican majority lead- study is from 1993—not 2002. It fails to Mr. KERRY. Because we ran out of er—— reflect the changes in passenger protec- time. The leader made a decision that Mr. KERRY. Is totally inaccurate? tion. It doesn’t reflect dual airbags. It there was not time for the committee Mr. MURKOWSKI. Has never ever doesn’t reflect what we have in our to act. There, clearly, would have been taken away—— bill, which is rollover safety. Ten thou- a majority in the committee, but we Mr. KERRY. Never circumvented? sand people lost their lives last year did not have time because of the sched- Mr. MURKOWSKI. May I finish the because SUVs roll over. They have a 75- ule of the Senate. And the majority answer—has never ever taken away the pound roof. The car is so heavy that it leader made a decision to try to meld it function and responsibility of the com- crushes them. The industry has re- with the energy bill in order to keep mittees to meet. sisted that protection. For a small his commitment to you, I believe, to Mr. KERRY. That is not what I cost, you could save those 10,000 lives. bring the energy bill here at the appro- asked. That is in our bill. It is not in their priate time after the recess. Mr. MURKOWSKI. If the Senator will bill. Mr. MURKOWSKI. Well, as the Sen- look up the RECORD, they have never Mr. MURKOWSKI. Is that portion in ator from Massachusetts knows, the seen, in the 22 years I have been here, the bill? leadership has seen fit to basically go an occasion where the majority leader Mr. KERRY. Yes. This is in our bill. around the committee process because has absolutely forbid the committees It is introduced. It is on the floor now. the Energy and Natural Resources to meet. The Republican leader may You are about to strip it. But that is Committee has not met in a markup have moved bills without going what is here. since October. We had no opportunity through the committee, but never, Mr. MURKOWSKI. That is not my to address amendments and bring in never, never. So there is a difference. understanding. I would appreciate the debate and develop a consensus. That is There is a significant difference here. Senator from Massachusetts advising why I think it is unfortunate that so This is a usurping of the committee us just where specifically that is. much of the process we are going process and function by the dictate of

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1767 the majority leader because he knew Mr. MURKOWSKI. I thought the Sen- never been done in my understanding we had the votes to vote out ANWR. ator from Massachusetts was going to of the traditions of the Senate on a That is what is so undemocratic about respond to my question; which was, Is matter of national security. this process. he going to allow a 50-vote on ANWR? This is what the ANWR issue is. It is Is the Senator from Massachusetts I don’t think he addressed that. the national security of our country willing to give us an up-down vote on Mr. KERRY. I will. Mr. President, let because, obviously, as the Senator ANWR? me say pointedly, I have been here now from Massachusetts knows very well, Mr. KERRY addressed the Chair. for 18 years. And in the 18 years that I when there is a shortage of oil, the Mr. MURKOWSKI. I am asking the have been here, as the Senator from price goes up. The Senator from Massa- question. Alaska knows, there are certain kinds chusetts would recall in 1973, when we Mr. KERRY. I am going to answer. I of issues that rise to such a level of had the Arab oil embargo, when we had am asking recognition to be able to do both emotional as well as substantive the Yom Kippur War, we were 37-per- that, Mr. President. quality and contest that they always cent dependent on imported oil. Today The PRESIDING OFFICER. The Sen- require 60 votes. we are 57- to 58-percent dependent. ator from Alaska controls the time, I have seen time after time on both What happened in 1973, we had gas lines and I believe he has yielded to the Sen- sides of the aisle—it is just the dif- around the block. There was frustra- ator for the response. ficulty here—if you have a contested Mr. KERRY. Mr. President, I would tion. People were blaming government. issue, that is significantly contested on be delighted to answer the question. I would hope this never happens both sides, almost every time here it And, at the same time, may I say to again, but if it does, I suggest the Sen- does not happen unless one side or the the Senator, look, my question to him ator from Massachusetts will have to other musters 60 votes. It may be re- was whether or not a majority leader reflect on the attitude he proposes to grettable, but many people believe that on the other side has circumvented. I take. is one of the great protections of the On national security items, it is did not ask him whether they met or Senate, so we do not rush to do things uncalled for to try to establish a fili- not. Mr. MURKOWSKI. Because he has that we regret or even as a way of pro- buster to reflect an individual and a never done it. tecting the minority. It is what our particular group that has milked this Mr. KERRY. And he has cir- forefathers put in place. And I have issue for virtually all it is worth. I am cumvented. said that I will exercise that privilege talking about America’s extreme envi- Mr. MURKOWSKI. He has never done afforded us by the rules of the Senate. ronmental community. it by pulling the authority—— And that is what I intend to do on that There is absolutely no evidence that Mr. KERRY. But he has done it. subject. ANWR can’t be opened safely. And the Mr. MURKOWSKI. Of the committee Mr. MURKOWSKI. I am glad that residents of my State of Alaska happen of jurisdiction away from the process the—— to support it. The Native residents of going on in the committee or forbid the Mr. KERRY. May I say, it is not with Kaktovik, the area that is affected, committee from even holding markups any disrespect for the Senator from support it. ANWR can be on-line in a for fear they would be somewhat Alaska. I admire his tenacity. I know relatively short period of time. It can confrontational. this means a great deal to him. We just mean as much in oil coming into this Mr. KERRY. Mr. President, I can’t happen to differ. And I think it is an country and being produced as Prudhoe speak to the question of methodology. issue that has to be resolved with those Bay did. That was 20 to 25 percent of I simply am asking about the result. 60 votes. the total crude oil produced in the My result answer is affirmative. Mr. REID. Will the Senator yield? United States for the last 27 years. Mr. MURKOWSKI. If the minority Mr. MURKOWSKI. If I may respond Those are the facts. The debate we leader were here, he would cite the spe- to my friend from Massachusetts. will have on that issue will take care of cific differences. The Senator from To suggest that we do not want to it. It certainly is not in the best tradi- Massachusetts can either accept my move into these things too rapidly, tions of the Senate to take a national explanation or not. But factually, what this issue has been before this body for security interest and mandate a clo- happened is that the committee was many, many years. ture 60 vote point of order. That is forbidden to address any business be- Mr. KERRY. I agree. what the Senator has chosen to do. fore the committee. So we have not Mr. MURKOWSKI. It is not a move- Mr. REID. Will the Senator yield for had any markups. We have not had opment of rapidity. We passed opening an announcement to the Senate, with- portunities to offer amendments. ANWR in 1995, as the Senator from out the Senator losing his right to the That did not occur in the Commerce Massachusetts will recall, and it was floor? Committee. You had a process. He fi- vetoed. Mr. MURKOWSKI. Surely. nally pulled it. It did not occur in the Mr. KERRY. Let me say to my Mr. REID. We have had a number of Finance Committee because he finally friend, I am not saying rapidly. I am calls in both cloakrooms as to what pulled it. But in the Energy and Nat- saying that sometimes applies. will happen tonight. We are very close ural Resources Committee we were Mr. MURKOWSKI. It was vetoed by to having a unanimous consent agree- simply forbidden, and that was it. President Clinton. Had we proceeded ment proposed to the Senate that Mr. KERRY. Mr. President, I think with it at that time, we would now would set up a vote on this matter that that the assistant majority leader may know what we had. And I think that is now before the Senate at 11:30 to- or may not have a better history of the Senator from Massachusetts has morrow morning. We also have recog- that than I do, but I just want to say forgotten one thing. On matters of na- nized Senator MILLER has been waiting something. With respect to—I ask the tional security—and certainly national to offer his amendment. He would do Senator from Alaska about this. The security is an issue, as we look at our that after we come in in the morning other day, in the Washington Post, situation with Iraq, our dependence on so we would be able to have the two Paul Portney, who is the chairman of imported oil from Saddam Hussein, the votes in the morning. the National Academy of Sciences fact that we are enforcing a no-fly Mr. LEVIN. Mr. President, if the Sen- panel that the Senator referred to zone, risking the lives of men and ator will yield, I had a discussion with —and he is the president of the think women—on September 11, we were im- Senator MILLER. My understanding was tank—said that what we are proposing porting over a million barrels of oil a that the debate on his amendment in our bill is—I am quoting—‘‘roughly day from Iraq. We are threatened now would occur after the disposition of the consistent with what the Academy relative to the exposure of terrorism Levin-Bond amendment. identified as being technologically pos- from that part of the world. And the Mr. REID. That is correct. sible, economically affordable, and con- Senator from Massachusetts has cho- Mr. LEVIN. I thank the Senator. sistent with the desire of consumers for sen not to let 50 percent of the Senate Mr. REID. If I misspoke, I am sorry. passenger safety.’’ Is the Senator make a decision on a matter of na- We have a lot of people waiting, and we aware that the chairman of the panel tional security. He has chosen on his are going to offer a unanimous consent signed off on that? own to filibuster something that has request to set up things in the morning

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1768 CONGRESSIONAL RECORD — SENATE March 12, 2002 and tomorrow afternoon. If people Mr. BOND. For a parliamentary in- Frankly, it says, ‘‘setting forth in- would be kind enough when there is a quiry, I am happy to do so. creased average fuel economy stand- break in the speeches in the next 10 Mr. DURBIN. May I inquire of the ards.’’ minutes or so, I would like to offer the Chair, is there any control in a unani- There have been questions raised by request so we can move on. mous consent or rule of the Senate rel- the Senators from Massachusetts and Mr. MURKOWSKI. I thank the ma- ative to the order of speaking as to Arizona as to whether there would be jority whip. whether Members will each have a any action by the Department of The PRESIDING OFFICER. The Sen- chance to speak once before a Member Transportation. It is important to ator from Alaska has the floor. speaks a second time or what order point out to whoever still remains that Mr. KERRY. Mr. President, point of Members will be recognized? Secretary Mineta, in July of 2001, re- personal privilege. The PRESIDING OFFICER. There is quested that Congress remove riders Mr. MURKOWSKI. I yield the floor to no controlling unanimous consent at preventing the Department of Trans- Senator BOND. this time with regard to debate on this portation from revising the current The PRESIDING OFFICER. The Sen- amendment. CAFE standards. ator may not yield the floor to another Mr. DURBIN. Could I inquire of my Once Congress did that, the National Senator. colleague from Missouri if he could Highway Traffic Safety Administra- Mr. BOND. Mr. President, I had an give me an indication of how long he tion—which I will refer to as NHTSA— inquiry to the distinguished deputy wishes to speak? moved expeditiously in resuming CAFE majority leader. We have been prom- Mr. BOND. Mr. President, I thank my rulemaking and published a notice on ised to see a copy of the amendment colleague from Illinois. I have been January 24, and on February 7 issued a that is to be offered. Before we agree waiting since about 3:45 because there request for comment for new CAFE on the unanimous consent request on were a number of points that were standards for light trucks, requested this side, we would like to see a copy of raised by my good friend from Massa- public input. On February 1, the Sec- that amendment. I wonder if we could chusetts. He was kind enough to pay retary sent a letter to Congress urging be accommodated. attention to some analogies I drew. It that DOT be given the necessary au- Mr. REID. I say to my friend, we is probably going to take me 10 to 15 thority to reform the CAFE program. have so ordered the unanimous consent minutes to correct the RECORD. But I The administration has requested an am very sympathetic to the needs of agreement that that should not be a increase in NHTSA’s budget to accom- my other colleagues who wish to speak, concern to the Senator. None of his plish the development of the new and I do need to straighten that out. rights or privileges would be lost. We standards and has begun updating its With the Chair’s permission, I will go will go over that with him prior to of- 1997 analysis of vehicle size. ahead and reclaim my time and begin fering it. So I think NHTSA, which the Na- The PRESIDING OFFICER. The Sen- by making, first, a request. tional Academy of Sciences study said Mr. KERRY addressed the Chair. ator from Missouri now has the floor. The PRESIDING OFFICER. The Sen- should move forward, has shown it is Mr. BOND. Mr. President, I appre- ator from Missouri has the floor. willing to do so and that it is anxious ciate the chance to address a number of Mr. KERRY. I realize that. I am ask- to do so. things that have been said on the floor. ing if I could ask him just a quick in- Now, one other item has been raised. Before doing that, I would ask if the quiry. My colleague from Massachusetts had distinguished majority whip had fur- The PRESIDING OFFICER. Does the a great line, a wonderful line, saying ther comments. I did not mean to cut Senator from Missouri yield for a re- they had the most efficient workers him off. quest of the Senator from Massachu- and the U.S. auto industry can turn Mr. REID. I appreciate that. The setts? out the best cars around but they are Senator certainly has not lost his right Mr. BOND. Mr. President, I have en- forbidden to do so by the ‘‘terrible to the floor. Tonight anyone who wants joyed listening to the Senator’s speech- management.’’ It is all the manage- to speak on this amendment should es and questions, and I have a number ment and the designers. Do you know talk as long as they want. We have a of answers to questions he has already something, Mr. President. The people number of people in the Chamber who raised. I prefer to answer those ques- saying they don’t want those minicars wish to talk. Certainly we are going to tions, and then I shall be happy to en- are the consumers. The people who de- complete debate on this tonight. That tertain such remaining questions. But termine what the national auto- and is mainly what the unanimous consent he has addressed in his statements a truck-buying public consume are the agreement does. It sets up a vote in the number of questions to me. I am look- consumers themselves. morning. So if everyone would be un- ing forward to the opportunity to at- There are some in this body who derstanding of that, in the immediate tempt to answer those questions. think we can tell them that it is good future we will offer the request. Mr. DURBIN. Will the Senator yield for you, eat your spinach—even if you Mr. LEVIN. Will the Senator from for a unanimous-consent request? don’t like it. They tried to tell them to Missouri yield? Mr. BOND. Mr. President, unless it is eat their spinach. They got 50 different The PRESIDING OFFICER. The Sen- from the majority whip, I would prefer small cars that meet very high stand- ator from Missouri has the floor. to go on with my statement. I have ards. Yes, by God, some of them are Mr. BOND. I am happy to yield to the told the Senators that I would hope to golf carts. I love the golf carts. They distinguished Senator from Michigan. be able to complete this in less than 15 are going to be all over the place if we Mr. LEVIN. For a question of the ma- minutes, if I could reclaim the floor. have this absolutely arbitrary 37-mile- jority whip, if I could: Did I understand First, there was a statement by my per-gallon fleet average, or 35, or what- the majority whip to indicate that the friend, the Senator from Arizona, that ever they come up with in their sec- debate on this amendment would be there is nothing going to be done to ondary amendment. We are going to be completed tonight under this proposed improve fuel efficiency under the driving lots of golf carts because they UC? Levin-Bond amendment. will make it. But only 1.5 percent of ve- Mr. REID. Let me respond to the I refer the Senator from Arizona to hicle sales in the United States today— Senator from Michigan, yes, the debate section 801, the very first page. It di- even though there are 50 different mod- would be finished tonight. We would rects the Secretary of Transportation els—are of the mini subcompacts that have 5 minutes on each side in the to issue new regulations setting forth get the very high miles per gallon aver- morning. increased fuel economy standards for age. Mr. LEVIN. Prior to the vote? automobiles that are determined on For those people who want to drive Mr. REID. Yes. the basis of maximum feasible average them and want to save gasoline, more The PRESIDING OFFICER. The Sen- fuel economy levels, taking into con- power to them. That should be their ator from Missouri has the floor. Does sideration the matters set forth in sub- choice. That should be the consumer’s the Senator from Missouri yield for a section F. That essentially lists all of choice. There have been a lot of state- parliamentary inquiry to the Senator the factors included in the National ments made about the fact that, well, from Illinois? Academy of Sciences study. the only arguments against increased

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1769 CAFE are from the automakers. There cle, the more energy it takes to move First, CU uses an invalid comparison of ve- are those of us who are supporting the it down the road and it results in a de- hicle crash death rates published by the In- Levin-Bond amendment who believe crease in fuel economy. stitute to suggest that drivers of Honda that the basis for our concern and for The National Committee of Sciences Civics are at less risk than drivers of Chev- report said: rolet Suburbans. Such a claim is absurd on our amendment is the National Acad- the face of it. Plus the comparison is invalid. emy of Sciences study. If an increase in fuel economy is affected The two death rates are not statistically dif- I had my breath taken away by the by a system that encourages either ferent, as indicted by the confidence bounds attacks on the National Academy of downweighting or the production in sale of we published. Also (as noted in our publica- Sciences, but I will quote some figures more small cars, some additional fatalities tion) nonvehicle factors such as use patterns from it. would be expected. and driver demographics influence vehicle The Senator from Massachusetts said In addition, the Senator from Massa- death rates, and these are likely to vary it is technically feasible and poten- chusetts said unequivocally that NAS, across different vehicle types such as small tially economical to improve fuel econ- in its report, said a fleet of 37 miles per cars (Civics) and very largest sport utility omy without reducing vehicle weight gallon could be reached with existing vehicles (Suburbans). technology and without any loss of Even though we pointed out to CU the po- or size. It goes on to say that two mem- tential influences of nonvehicle factors on bers of the committee believe it may jobs. That is just simply not true. Nobody the computed death rates, the letter claims be possible to improve fuel economy that ‘‘when we take all crash factors into ac- without any implications for safety, can find a reference in this wonderful count in the real world the Honda Civic had even if down-weighting is used. So that National Academy of Sciences report. I fewer driver fatalities than the Chevrolet statement from the National Academy hold it up. It is a little dog eared. I Suburban.’’ This is a complete misrepresen- of Sciences shows that the rest of the have been looking for the statement tation. Nonvehicle factors such as use pat- members of the panel said it would cited as gospel by the Senator from terns and driver demographics were not have an impact on safety. Massachusetts. It is not in there. There taken into account. The claim that ‘‘all Furthermore, the committee states are not even any fleetwide numbers in crash factors’’ were taken into account is wrong. No nonvehicle crash factors were ac- that it recognizes the automakers’ re- the report. Rather, there are cost-efficient fuel economy levels for 10 dif- counted for when the death rates were com- sponses could be biased, but extensive puted. downsizing that occurred after fuel ferent subclasses of light-duty vehicles. Second, the CU letter distorts basic facts economy requirements established in Nowhere are those numbers sales concerning occupant safety and vehicle 1970 suggest that a likelihood of a simi- weighted to yield a fleet average. weight. The evidence is overwhelming that lar response to further increases in fuel Of the six cost-effective scenarios ex- the lightest passenger vehicles (which con- economy requirements must be consid- amined by the National Academy of sume less fuel per mile) offer much less pro- ered seriously. From this, I repeat the Sciences panel, is there even 1 of the 10 tection to their occupants than heavier vehi- classes estimated to be able to reach cles (which consume more fuel per mile). It message previously received—that we also turns out that the safety benefits to ve- will be getting into smaller cars that that level? There are subcompact and compact cars which under a 3-year pay- hicle occupants diminish as vehicles get are more dangerous. heavier and heavier, so we don’t have to Speaking of smaller cars, my col- back period could get up to 30 miles per choose the heaviest passenger vehicles to get league from Massachusetts talked gallon, and the highest light truck good crash protection. Still, we should avoid about the Escape hybrid electric vehi- value is only 24.7 miles per gallon. the lightest ones. cle. Well, the rest of the story, and The National Academy of Sciences It is sometimes claimed that the high what he did not tell you, is that the Es- report in no way suggests that a 37, 35, crash risks for occupants of light vehicles cape, which is the basic car, can only 32—whatever number you want to give are entirely due to the adverse consequences tow 1,000 pounds. It is a small front- me—is achievable. of collisions with heavier passenger vehicles Also, my friend from Massachusetts and, therefore, it is the heavy vehicles that wheel drive. The hybrid would cost are the problem. It is correct that heavier $3,000 to $5,000 more, and it is 1,000 cited a Consumers Union study on possible safety effects. Unfortunately, vehicles increase the risks for occupants of pounds lighter. Now, 1,000 pounds is a light vehicles in two-vehicle crashes, but significant factor because that is basi- that CU study used an invalid compari- this effect makes only a relatively small cally what the lower weight of vehicles son of vehicle crash death rates pub- contribution to the high risks for light car after the CAFE standards went into ef- lished by the Insurance Institute for occupants. Our October 30, 1999 newsletter, fect—what resulted in the roughly 2,000 Highway Safety to suggest that drivers Status Report (enclosed), pointed out in an ar- deaths per year that the National of Honda Civics are at less risk than ticle on crash compatibility that almost 60 Academy of Sciences foresaw. drivers of Chevrolet Surburbans. The percent of the deaths of occupants of the Insurance Institute says: lightest cars (<2,500 pounds) occur in single- There may be some people who want vehicle crashes, crashes with big trucks, or Such a claim is absurd on the face of it. the hybrid electric vehicle. But if I crashes with three or more vehicles. Two-ve- Plus, the comparison is invalid. The two were driving young children in my fam- hicle crashes with other cars (including death rates are not statistically different, as ily around, I don’t think I would want other light cars) account for 23 percent of indicated by the confidence bounds we pub- to go with a smaller car. There is no the deaths in light cars, and crashes with lished. Also . . . nonvehicle factors such as sport utility vehicles and pickups of all assurance that the consumers are use patterns and driver demographics influ- weights, not just the heaviest ones, account going to buy it. That is the problem ence vehicle death rates, and these are likely for 15 percent of the deaths of small car oc- with some of these command-and-con- to vary across different vehicle types such as trol decisions from Washington. They cupants. small cars . . . and very large sport utility The high risks for occupants of light cars say that if we direct the manufacturers vehicles. in crashes are due to the inherent lack of to build it, then the consumers will I ask unanimous consent this letter protection these vehicles offer in all kinds of buy it. Well, American consumers like be printed in the RECORD. crashes. Additional vehicle safety standards to make choices themselves. Some- There being no objection, the letter cannot offset the higher crash risks for occu- times they say we are not going to buy was ordered to be printed in the pants of lightweight vehicles. Such stand- them. RECORD, as follows: ards may make light vehicles safer, but they also will make heavier vehicles safer, so the The 10 most fuel-efficient cars in INSURANCE INSTITUTE FOR disparities in risk will remain. America account for only 1.5 percent of HIGHWAY SAFETY, The laws of physics dictate that light vehi- auto sales. In a recent survey of at- Arlington, VA, March 6, 2002. cles consume less fuel per mile and are less Hon. CHRISTOPHER BOND, tributes, they show that the consumers protective of their occupants in crashes. This U.S. Senate, Russell Senate Office Building, value safety, comfort, utility, perform- means fuel conservation measure that in- Washington, DC. ance, and fuel economy ranks at the creases the use of light cars will do so at a DEAR SENATOR BOND: This is in response to bottom. cost of unnecessary crash deaths and inju- your request for reactions to statements in a In addition, when we talk about the ries. letter sent by the Consumer Union (CU) to Sincerely, technological improvements, Congress members of the Senate on possible safety ef- BRIAN O’NEILL, is not making the laws of physics. We fects of pending fuel economy legislation. President. are not changing science. The CU letter seriously misrepresents the The safety improvements add weight adverse safety consequences of reducing ve- Mr. BOND. Mr. President, finally, it to the vehicles. The heavier the vehi- hicle weights to improve fuel economy. has been suggested that the Honda

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1770 CONGRESSIONAL RECORD — SENATE March 12, 2002 manufacturing motor company is sup- be recognized to offer an amendment and was injured. He received a Silver porting the effort to get the 36 miles regarding CAFE; that the Miller and Star, which is a significantly high per gallon. Today’s National Journal Kerry amendments be in order regard- medal for heroism. JOHN KERRY was a Congress Daily on page 9 reports that less of the outcome of the vote with re- hero in the battles in Vietnam. I have it opposes the bill sponsored by Sen- spect to the Levin amendment, with no spoken with people who were with him ators KERRY and MCCAIN, and it says it second-degree amendments in order to in Vietnam, and the things he did there supports the measure supported by the the Levin or Miller amendments, nor were very heroic. distinguished Senator from Michigan to any language which may be stricken JOHN KERRY believes what he is doing and myself. by those two amendments; provided deals with the security of this country. Honda’s representative in Wash- further that if an amendment is not I agree with JOHN KERRY. ington said: disposed of, then the Senate continue The PRESIDING OFFICER. Under The Kerry provision is just too aggressive. its consideration of that amendment the previous order, the Senator from Il- Ultimately, NHTSA ought to decide the until disposition and then resume the linois is recognized for up to 25 min- standard. order of this unanimous consent agree- utes. The Levin-Bond amendment would do ment, as previously announced, with Mr. DURBIN. I thank the Chair. Mr. that. For all those who have com- no further intervening action or de- President, I thank the Senator from plained that there is going to be no bate. Nevada, the majority whip, for pro- progress, that it is going to be in the The PRESIDING OFFICER. Is there pounding this unanimous consent re- hands of the auto companies, I refer objection? quest. I would like to join in this de- them simply to the Levin-Bond amend- Mr. BOND. Mr. President, reserving bate. We will talk about a lot of dif- ment which says that NHTSA must in- the right to object, two things. For the ferent aspects of the energy bill, but I crease fuel economy, it must do so in 11:30 a.m. vote, several on this side think this debate on fuel economy consideration of the scientific and have asked for more time. So I will re- standards for automobiles and trucks technological information developed spectfully request that that be ex- in America goes to the heart of the and presented in the National Academy tended to 20 minutes. I have a basic issue. There are many who believe we can of Sciences proposal. problem. We still have not seen the discuss the future energy needs of Their report is called ‘‘The Effective- amendment that is to be offered by America without engaging the Amer- ness and Impact of Corporate Fuel Senators KERRY or SNOWE, and, until Economy Standards.’’ We are seeking ican people; that we can offer to them we see it, we don’t know if the time is the false promise and the false hope to do something that is rather unusual, adequate. We would like to see that. and that is to say, use the best science, that we can become close to energy Mr. REID. We have provided no time independent without any change in the best economics, continue to make for that. We changed that. lifestyle, without very many changes progress but do not throw hundreds of Mr. BOND. OK. Then with the change in law, and without any sacrifice by thousands of people out of work, do not to 20 minutes equally divided, we have business or families or individuals. I endanger lives, and do not destroy con- no objection. am not one of those people. sumer choice. The PRESIDING OFFICER. Without I believe if we are going to be honest This is not a command-control econ- objection, it is so ordered. with the American people about our omy like the old Soviet Union where Mr. REID. If the Senator will yield, energy challenges in the years ahead, we could say we are going to put out the majority leader has asked me to we have to tell them that it is going to one car and that is what you are going announce that there will be no more call for sacrifice; it is going to call for to drive. Frankly, American consumers rollcall votes tonight. I ask, if the Sen- commitment; it is going to call for an have developed their own tastes. Yes, ator will allow me, that following the understanding of our role in the world. we are going to push for better tech- statement of the Senator from Mis- The reason I say this is the following: nology, but we are not going to tell souri, the Senator from Illinois be rec- The United States currently imports 51 them that you can only drive a mini ognized for up to 25 minutes. percent of its oil. That number is ex- subcompact or, as I say to my friend The PRESIDING OFFICER. Is there pected to increase to 64 percent by the from Massachusetts, a golf cart. objection? year 2020. Forty-two percent of U.S. oil I look forward to continuing the de- Without objection, it is so ordered. consumption is used for gasoline for bate tomorrow, and I urge my col- Under the previous order, the Sen- passenger cars and light trucks. It is leagues to support the Levin-Bond ator from Illinois is recognized. predicted that passenger fleet con- amendment. I am happy to yield the Mr. REID. Mr. President, I know the sumption will rise to 56 percent by the floor. order allows the Senator from Illinois year 2020. Mr. REID. Mr. President, I ask unan- to speak. We cannot have a meaningful and imous consent that upon the conclu- The PRESIDING OFFICER. The Sen- honest discussion about reducing sion of debate today with respect to ator from Nevada. American dependence on foreign oil the Levin amendment No. 2997, the Mr. REID. Mr. President, I did speak without addressing the question of fuel amendment be set aside, to recur at to my friend from Illinois. I ask unani- efficiency of the passenger cars and 11:30 a.m. tomorrow, Wednesday, March mous consent that I be allowed to light trucks that we drive as Ameri- 13; that at that time there be 10 min- speak for 3 minutes. cans. utes equally divided and controlled in The PRESIDING OFFICER. Without For the record, my wife and I own a the usual form remaining for debate objection, it is so ordered. Chrysler product, a Ford product, and a prior to a vote in relation to the Mr. REID. Mr. President, first, this Saturn. With our kids growing up, we amendment; that upon disposition of Energy Committee has been defamed have had a variety of cars, mainly the Levin amendment, Senator MILLER several times over the last several American cars, but we do our best to be recognized to offer an amendment weeks. There were a number of meet- buy American cars. regarding CAFE and pickup trucks; ings held. My friend from Alaska said Some of the things I am talking that there be 10 minutes for debate there were no meetings held since Oc- about are going to reflect on the Amer- with respect to the Miller amendment, tober. Nine people have been con- ican automobile industry, and I am with 4 minutes controlled by Senator firmed, and they had to come out of sorry if it is taken as a negative com- MILLER and 5 minutes under the con- the committee. That is one example. ment but I have to get some of these trol of Senator GRAMM of Texas, and I also say this about my friend, JOHN things as part of the record and part of the remaining 1 minute under the con- KERRY. Something was said that what my feelings about this issue. trol of the opponents; that upon the he was doing was not supportive of na- Let me tell you the history of fuel ef- use or yielding back of the time, the tional security. No one should ever ficiency in America so you can under- Senate vote in relation to the Miller talk about JOHN KERRY and national stand for a moment what we are dis- amendment; that upon disposition of security. He has done more than talk cussing today. the Miller amendment, Senator KERRY about national security. He put his life In 1975, there was a heated debate in or Senator SNOWE, or their designees, on the line in the jungles of Vietnam Congress about establishing for the

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1771 first time in history fuel economy requirements of laminated windshields, The second premise of the opposition standards for automobiles and trucks seat belts, and other safety require- to increasing fuel efficiency standards manufactured in the United States. At ments. is that the American consumers should that time, the average fuel efficiency In 1971, Ford again, and this was Lee not be asked to change their buying was about 14 miles a gallon for the Iacocca, who was with Ford at the habits in any way whatsoever. fleets that were being built primarily time: Frankly, I think those who take that by the Big Three in Detroit but by The shoulder harnesses, the headrests are a position are underestimating the peo- other manufacturers as well. complete waste of money and you can see ple in this country. I think Americans This Congress decided at that time to that safety has really killed all of our busi- are prepared to accept a change in life- dramatically increase the fuel effi- ness. We are in a downhill slide the likes of style, a change in the vehicles they ciency required of automobile manu- which we have never seen in our business, buy, if we explain to them that if they facturers to a level of 27.5 miles a gal- and the Japanese are in the wings ready to pay that price, America will come out lon by 1985. In a 10-year period of time, eat us alive. ahead; we will lessen our dependence we virtually doubled the fuel efficiency That was Lee Iacocca of Ford Motor on oil coming from Saudi Arabia, from of cars and trucks in America. Now, Company in 1971 talking about any law the gulf states, from overseas. We will trucks I will have to say were an excep- requiring safety equipment on auto- be able to take positions on foreign tion, and because of that exception, mobiles in the United States. policy and on potential battles with which I will allude to later, perhaps it I will not read through all of the other countries based on the fact that was not the entire fleet taken into con- quotes on emissions controls. Trust we will be less dependent on them. sideration, but when it came to auto- me. Year after year, the Big Three To me, that makes eminent sense, mobiles we moved from 14 miles a gal- have come before Congress, testified, and I think I could go home to my lon in 1975 to 27.5 miles a gallon in 1985. and stated publicly that any changes in State, or to virtually any State in this There were many critics who said their design and manufacture man- country, and say to people across this that was impossible, technologically dated by law would result in their country: Americans, we need to gather unachievable, it was going to require bankruptcy in the production of vehi- together. We need to stand united as Americans to run around in kiddy cars, cles, that Americans would not buy we have in the last 6 months since Sep- and that, frankly, it would push manu- and, frankly, would jeopardize our se- tember 11. We need to accept the re- facturing of automobiles overseas. curity as a nation as it shifted jobs ality that tomorrow’s automobile is If any of these arguments sound fa- overseas. going to look a little different from to- miliar, it is the same litany of com- Despite all of those protests, in 1975 day’s; tomorrow’s truck is going to plaints we have heard today about im- this Congress enacted that law which look a little different, too, but it will proving fuel efficiency standards. When virtually doubled the fuel economy of be more fuel efficient and it will lessen one looks back at the history of that cars in the United States. So one might our dependence on foreign oil. debate in 1975, some of the things that ask then, what happened next? The an- Is that not a valuable thing for us to were said are nothing short of incred- swer is, absolutely nothing. do as a nation? I think most Americans ible. Since 1985—for 17 years now—Con- would agree. But some would not even In 1974, a statement before the Sen- gress has been unwilling to even ad- bring that question to the American ate Commerce Committee from Chrys- dress the issue of improving fuel econ- people. They do not want to even raise ler Corporation about the new fuel effi- omy of automobiles in the United the possibility or the specter that we ciency standard that would move fuel States. That is an incredible state- would have to change our buying hab- economy from 14 miles a gallon to 27.5 ment, that after 10 years of a dramatic its. miles: technological breakthrough, doubling The third premise of most of those In effect, this bill would outlaw a number fuel economy, for 17 years we have who oppose improvement on fuel econ- of engine lines and car models, including done nothing. And the automobile omy and fuel efficiency is the Senate is most full-size sedans and station wagons. It manufacturers in Detroit have done prepared to abdicate any responsibility would restrict the industry to producing sub- nothing either. If anything, they have to meaningfully reduce American de- compact-size cars, or even smaller ones, pendence on foreign oil. Trust me. If we within 5 years, even though the Nation does gone in the opposite direction. The cars that are sold today, particu- will not address fuel efficiency and fuel not have the tooling capacity or capital re- economy, which we know is going to sources to make a change so quickly. larly SUVs, are less fuel efficient. Of course, as a result of that, our depend- account for more than half of the oil Thus spoke Chrysler in 1974 facing that will be imported into the United the first fuel efficiency standard in- ence on foreign oil continues to increase. States by the year 2020, then the rest of crease. this conversation about energy is sim- General Motors in 1975, published in The premise of those who come be- ply eyewash. It is not serious. It is not Oil Daily, said as follows: fore us today and oppose the underlying bill, which improves fuel econ- substantive. It is not going to achieve If this proposal becomes law [to increase what America needs: Leadership on en- fuel efficiency] and we do not achieve a sig- omy to 36 miles a gallons—35 miles a ergy. Unfortunately, that is where we nificant technological breakthrough to im- gallon. I keep getting the numbers con- stand today. prove mileage, the largest car the industry fused, but I believe it is 35 miles a gal- will be selling at any volume at all will prob- I received a letter from a constituent lon. There are three premises behind of mine. He sent it to my office, and I ably be smaller, lighter and less powerful that. First, those who oppose it would than today’s compact Chevy Nova and only a will read it into the RECORD. He is in small percentage of all models being pro- say improved fuel economy is a goal Chicago, IL. His name is ‘‘Z’’ Frank. duced could be that size. beyond the capacity of American Those who are from the Chicago area It is not just the resistance of the Big science and technology. We have heard are familiar with him and will know Three to fuel economy. The Big Three it over and over again. They refer to immediately that he is the world’s have virtually resisted any efforts to study after study. They cannot see that largest Chevrolet dealer, that he is the establish new standards for fuel econ- we would move from 27.5 miles a gallon President of ‘‘Z’’ Frank Chevrolet. This omy, safety, and auto emissions as a fleet average to 35 miles a gallon man is the largest dealer of Chevrolets throughout the years. They have been and do that with our ability to bring and is writing to Members of Congress, resistant to change. together the best scientists and those all of us, on the issue of fuel efficiency. In 1966, Ford said, when we were im- involved in automobile technology. Keep in mind, the company that makes posing national safety standards: They are very despondent that if De- the cars he sells is opposing an increase Many of the temporary standards are un- troit were challenged to meet this goal, in fuel efficiency. reasonable, arbitrary and technologically they would ever be able to meet it. Listen to what Mr. Frank writes to unfeasible. If we cannot meet them when Does that sound familiar? Does that all of us in reference to this debate. they are published, we will have to close not sound like the debate in 1975, when The letter is dated February 25, 2002, down. the Big Three came and told us this and reads as follows: That was from Henry Ford II. He was cannot be done, it is technologically I write in support of raising fuel economy referring to the onerous Government impossible? standards, as the President of ‘‘Z’’ Frank

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1772 CONGRESSIONAL RECORD — SENATE March 12, 2002 Chevrolet, having sold well over 1,000,000 It pains me to be at odds with the manu- the courage to stand up and do what is Chevrolets. My family has been selling and facturer I represent. For 65 years, my family right for this country at a time when leasing cars and trucks in Chicago since 1936. has been selling cars and trucks—almost 50 we know what our dependence on for- Before entering the family business in 1976, I of those years, Chevrolets. Selling Chev- eign oil means. graduated from George Washington Univer- rolets has been very financially beneficial sity and then the University of Chicago for my entire family and me. I do not want If we look at some of the things be- Graduate School of Business. I have been a to be at odds with General Motors and my fore the Senate, we understand why the Chevrolet dealer since 1982 and since then fellow dealers or threaten my economic fu- debate is getting out of hand. Look at have also held franchises from Oldsmobile, ture. I want to support my manufacturer— the Kerry-Hollings provision on in- Hyundai, Mazda, Subaru and Volkswagon. but first, they must give me the vehicles to creasing fuel efficiency to 35 miles per I call on you to support the kerry-hollings sell that are in the best interests of our citi- gallon by 2013—in other words, in 11 fuel economy bill to raise miles per gallon zens and our country. I believe they can and years to reach 35 miles per gallon, a 30- will do it if required. standards to 35 miles per gallon by 2013. percent increase over where it is today. Making cars go farther on a gallon of gas is Please support the Kerry-Hollings bill as a a responsible step to use less oil. responsible step towards a better future. This charts shows the amount of oil I ask you to support raising CAFE stand- Sincerely, that would be saved, millions of barrels ards as the best way to manage our energy CHARLES E. FRANK, a day; 3.5 million barrels a day would future and encourage automakers to imple- President, ‘‘Z’’ Frank Chevrolet. be saved if this were in place. ment fuel saving technologies that are cur- Mr. Frank, in that 2-page letter, Look at what the other side argues. rently available. summarized the most compelling argu- They suggest there is a painless way to Here is why: do this. We have spent more time in 1. Auto manufacturers are like the boy ments for Members to have the cour- who cried wolf. Every time the federal gov- age, the political courage, to vote for this Chamber talking about one piece ernment proposes new regulations, they cry higher CAFE standards. Here is a man of Alaskan real estate than any other the same story that it will limit choice, who sells the product. If he believed for issue regarding America’s energy pic- make vehicles less safe, cost jobs and hurt a second what we have heard on this ture. Senator MURKOWSKI and others the economy. During the same period in the floor, that what he would sell would be stand before the Senate and say the 1980s that fuel economy increased, traffic fa- something American consumers would real answer to our problem and depend- talities fell by half. And when new laws are never buy, he would not write that let- ence on foreign oil is to go ahead and passed, compliance follows. Now ask your- drill in the Arctic National Wildlife self, didn’t the year 2000 set the all time ter. If he believed for a second this record for light and medium weight vehicles were beyond the technology and ability Refuge. Look at the savings or produc- sales? Even after September 11, car compa- of American auto manufacturers, he tion that comes from the Arctic Na- nies have been selling a vast number of vehi- would not have written this letter. But tional Wildlife Refuge compared to the cles. It doesn’t seem to me that regulations he believes otherwise. And so do I. savings if we move toward fuel effi- have hindered volume or employment so far. Let me put this in historic perspec- ciency. It is not even close. Can you remember one instance when the tive. From 1975 to 1985, there was a 100- I have numbers which tell the story. manufacturers’ cries of gloom and doom percent increase in fuel efficiency. The U.S. Geological Survey says there have materialized? I can’t. are 3 million barrels of oil in the Arctic 2. American technological innovation can From 1985 to 2002, no change whatever. lead the way to safe, fuel efficient vehicles We are still stuck with the 1985 stand- National Wildlife Refuge and it will be that sip gas rather than guzzle it. I would ard. 8 or 9 years before we can bring it out. like to see General Motors provide me with Let me put in perspective what we We can have several times this amount a competitive high mileage vehicle to sell, are debating. The underlying bill wants of savings through automobile and in- and we’ll sell it! to move the fuel efficiency standard to dustrial efficiency. That is why we 3. Fuel-efficient technology can be imple- 35 or 36 miles per gallon, depending on need a strong CAFE provision in this mented without jeopardizing safety. Tech- the amendment before the Senate. And bill. By 2030, the cumulative savings nology such as better engines and trans- missions will be the driving force in making 35 or 36 miles per gallon means we will from CAFE reform will be over 18 bil- more fuel-efficient vehicles. General Motors take the 27.5-gallon fleet average now lion barrels of oil. In other words, the recently announced that it had technology and raise it by about 30 percent. From cumulative oil savings from CAFE re- to improve the engines it uses in the Subur- 1975 to 1985, we increased fuel efficiency form by the year 2030—to the end of ban, their largest SUV, by 25%. Technology, 100 percent. Under the Kerry provision this chart—would be 6,000 times the such as air bags and vehicle design, is also a before the Senate, we are asking that amount of oil we could ever drill out of driving force behind vehicle safety. High fuel in the 30 or 32 years since, Detroit and ANWR according to the U.S. Geological economy standards can help improve overall the automobile manufacturers increase Survey. safety by encouraging the use of strong but It is not an honest debate to say to lighter materials in the heaviest vehicles. their fuel efficiency by 30 percent. 4. As technology has improved, perform- I am sorry, but I have to say I don’t the American people, keep driving as ance has consistently improved as well. Com- believe that is an ambitious or impos- big a car as you want, do not ask De- petition will continue to improve perform- sible goal. If I believed for a minute troit to come up with anything that is ance. Under the CAFE system, the pickups this was beyond the ability of Amer- more fuel efficient, no sacrifice to De- and SUVs that have the torque and horse- ican science and technology, I would troit, no challenge to our technology power needed to haul heavy loads can retain throw in the towel, as are those who and science, drive whatever you want, their power. Consumers will continue to love are opposing the Kerry provision and when you want, no questions asked, their cars and buy the best cars that their monthly payments will allow. stand to say we cannot ask America’s and do not worry at all about our de- 5. There are real benefits to our environ- engineers and scientists to come up pendence on foreign oil because we can ment from raising CAFE standards. Cars, with a means over the next 13 or 14 drill in the Arctic National Wildlife SUVs and other light trucks now consume 8 years to improve the fuel efficiency of Refuge. million barrels of oil every day, and account our vehicles by 30 percent. That is what I hear from the other for 20% of US global warming emissions. But I do not believe that. As I stand side of the aisle. I think that is a ludi- High demand for oil also increases the pres- today, I know the Congress of 1975, crous position. I don’t think that even sure to drill in areas that should be left un- which had the courage to say to auto- gets close to squaring with the reality spoiled. Raising fuel economy standards will save oil and slash global warming pollution. mobile manufacturers, you can do 100 of the challenge we face in America. 6. I have a personal reason for supporting percent better in 10 years, was on the So I hope my colleagues, when they higher CAFE standards. Air pollution is a right track. There is not a single pro- consider this debate, will recall what very serious and growing problem, and my posal today that even gets close to set- we have been through in this country wife, who suffers from asthma, finds it in- ting that kind of ambitious goal. Yet it over the last 20 or 30 years. I hope they creasingly difficult to breathe. While making is doubtful we are going to pass any will remember the great debate in 1975 cars use less gasoline will not directly reduce meaningful fuel efficiency improve- where Members of Congress stood up air pollution from a car’s tailpipe, by cutting ment standard as part of this energy and said to the American people: We gasoline consumption, it will dramatically reduce air pollution that comes from refin- bill. That is a sad commentary. It is a are tired of these long lines, waiting at ing, transporting and refueling. Raising sad commentary on our automobile gas stations. We don’t want to increase CAFE standards will, in fact, help clean the manufacturers. It is a sad commentary our dependence on foreign oil. We are air. on this Congress that we do not have going to put a challenge out.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1773 They put that challenge out and the Mr. LEVIN. Madam President, let me It was amazing to me that then al- sad reality is, foreign automobile man- briefly comment on a few of the ques- most in the same breath he attacked ufacturers rose to the challenge, and tions which have been raised here the very findings of the National Acad- Detroit fought them all the way. today. emy of Sciences as being flawed. With- There was an old saying. When Con- First, in terms of the amendment in 1 minute of each other, those two gress passed the 1975 law, the Japanese which is offered, we are requiring that thoughts were uttered by our good automobile manufacturers went out there be an increase in fuel economy. friend from Massachusetts: One, the and hired a team of engineers to com- That is No. 1. But what we also say is National Academy of Sciences say the ply with the new standards that had that there are many factors that need increase in CAFE mandated by his bill been imposed on them by Washington to be considered, including safety fac- won’t affect safety; second, that the and the Big Three in Detroit went out tors, before that decision is made. National Academy of Sciences study, and bought a team of lawyers to fight We list those factors. We list every which has been quoted on this floor the new standards in court. factor that we can reasonably think of today, is flawed. Then he goes into the I don’t know how true that is. But I that somebody ought to consider before reasons why it is flawed. tell you, I think we can do a lot better. we arbitrarily adopt a number which is My point is actually a simpler one. It is a source of embarrassment to me then imposed upon this economy and Somewhere, somebody who has some that the first hybrid vehicles that upon the American public. expertise ought to look at some factors came on the market in America were We have heard a lot about safety that should go into the decision: What produced by foreign automobile manu- today. I want to read some things from should a new fuel economy standard facturers. We can do a lot better. De- the National Academy of Sciences be? We can do it here arbitrarily. We troit obviously will not do it on its about safety. This isn’t the automobile can say it ought to be 35 miles a gallon, own. It needs to have a standard, a industry and it is not the opponents of that it is technologically feasible using goal, and, frankly, a law which says we the Levin-Bond amendment. This is the possible advanced technologies. We can are going to dramatically improve the National Academy of Sciences. say that without consideration of cost, automobiles and trucks that we sell in It creates a lot of difficulty for the by the way; without consideration of America. opponents of my amendment because it safety; without consideration of dis- I genuinely believe we can meet this. raises an issue they do not consider. As proportionate impacts on different I genuinely believe we can rise to this Senator KERRY from Massachusetts manufacturers. challenge. I am not so despondent and simply said: The National Academy of We could do that here arbitrarily. Or negative to believe we have to throw in Sciences says that his proposal, ‘‘will we can do what this amendment does, the towel whenever faced with some- not affect safety.’’ which is to say there are a lot of cri- thing that some call as radical as in- Those are the words of Senator teria that ought to go into that deci- creasing fuel efficiency by 30 percent KERRY. The National Academy of sion: Technological feasibility, eco- over the next 11 or 12 years. Sciences says his proposal won’t affect nomic practicability, the effect of That is a modest goal, a very modest safety. other Government motor vehicle stand- goal. But look at the savings for Amer- I am afraid that the National Acad- ards on fuel economy—I want to come ica in reducing our dependence on for- emy of Sciences specifically found that back to that in a moment—the need to eign oil. the increase in CAFE, whether you like conserve energy, the desirability of re- Nor do I believe it is unreasonable to what we did or do not like what we did say to the American consumer: Yes, ducing U.S. dependence on foreign oil, back in the 1970’s, had an effect on the effect on motor vehicle safety, the that car or truck is going to look a lit- safety. Here is what they said: tle different in the years to come, but effects of increased fuel economy on air Based on the most comprehensive and quality, the adverse effects of in- isn’t it worth it? Isn’t it worth it to thorough analyses currently available, it know you are doing something? You creased fuel economy standards on the was estimated in chapter 2 of their study relative competitiveness of manufac- are driving a brand new car, brand new that there would have been between 1,300 and truck—it looks a little different, may 2,600 fewer crash deaths in 1993— turers, the effect on U.S. employment, the cost and lead time required for in- sound a little different—but when it is Which is the year they looked at it all said and done, you will still be liv- troduction of new technologies, the po- had the average weight and size of the light tential for advanced technology vehi- ing in the greatest Nation on Earth, duty motor vehicle fleet in that year been and we are less dependent on that for- that of the mid-1970’s. Similarly, it was esti- cles such as hybrid and fuel cell vehi- eign oil and those who produce it —and mated that there would have been 13,000 to cles to contribute to significant fuel lead us around by the nose too often 26,000 fewer moderate to critical injuries. savings; the effect of near-term expend- when it comes to foreign policy. I don’t These are deaths and injuries that would itures required to meet increased fuel think that is an unreasonable thing to have been prevented with larger heavier ve- economy standards on the resources ask, nor do I think it is unreasonable hicles, given the improvement in vehicle oc- available to develop advanced tech- cupant protection— to ask this Congress to basically say to nology, and the report of the National those special interests groups that That was raised today: Does this con- Research Council, which is the Na- have come to us and said stand in the sider the improvements? Yes. tional Academy of Sciences. way and stop any improvement in fuel and travel environment that occurred during Do we want these factors to be con- efficiency, that this is not in the na- the intervening years. sidered? Do we think they are rel- tional interest. In other words, the National Acad- evant? Do we think they should be part Mr. FRANK made that point. We have emy of Sciences study says these of a process that addresses where the to do what is best for this Nation in the deaths and injuries were one of the new standard should be? It seems to long run, for workers as well as fami- painful tradeoffs that resulted from me, yes. It is for 15 months. Under our lies across the board. And that means downweighting and downsizing, and the amendment, we direct the Department supporting a meaningful fuel-efficiency resulting improved fuel economy. of Transportation to—I use this word standard which lessens our dependence Those are difficult words for many because it is very important—increase on foreign oil. The net result will be a people to even consider, but they are standards for cars and light trucks better vehicle, more jobs, a safe vehi- words of the National Academy of based on the consideration of those cle; it will be something we are going Sciences. They repeat them in a num- facts. to be proud of. I hope Congress has the ber of places relative to safety. There That is No. 1. Those facts are rel- political courage to rise to the occa- is a tradeoff. That was the majority evant. They ought to be considered. sion. vote of the National Academy of They are the alternative. Unless someone is seeking recogni- Sciences. One of the things that the NAS also tion—the Senator from Michigan? I For the Senator from Massachusetts points out is that if new regulations yield the floor. to simply say the National Academy of favor one class of manufacturer over The PRESIDING OFFICER (Ms. Sciences said it will not affect safety— another, they will distribute the cost CANTWELL). The Senator from Michi- referring to his proposal—he is simply unevenly and could evoke unintended gan. wrong. responses.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1774 CONGRESSIONAL RECORD — SENATE March 12, 2002 On page 69 of the NAS study, they should give to him a fuel-efficient vehi- There was a reference made to Eu- say that in general new regulations cle so he could sell more—2 percent of rope: Why can’t we do what they do in should distribute the burden equally all of our sales in this country are sub- Europe where there is a much different among manufacturers unless there is a compact, are highly fuel efficient, and situation? The small car percentage in good reason not to. For example, rais- with a small number of other disadvan- Europe is 64 percent. Ours is 24 percent. ing the standard for light trucks to tages. They obviously do better on fuel econ- that of cars would be more costly for GM provided an electric vehicle, omy. But they do better for a number light truck manufacturers. which has much better fuel economy of reasons. Not only do they have three The Kerry-Hollings proposal affects by any kind of a test than any of the times as many small cars in use, main- manufacturers unequally because it proposed vehicles or any other existing ly because of the cost of gasoline, looks at fleet average instead of class vehicles that we have. Yet these vehi- which is about 21⁄2 times higher than average. We have gone into this in cles have been, if not a significant dis- our gasoline prices, but also they use some detail today. We have pointed out appointment, a serious disappoint- diesel engines. They have 36 percent that if you look at classes of vehicles ment. They have had these vehicles. diesel engines in Europe. We have and compare the light trucks, which we We have probably a dozen vehicles of about 1 percent here. have listed here manufacturer by man- extremely high fuel economy available The reason they are able to do that is ufacturer but do it class by class, for consumers, should they choose to diesel engine standards are very dif- American-made vehicles are at least as buy those vehicles and should dealers ferent from ours. Our tier 2 emission fuel efficient as imports. such as the dealer in Chicago choose to standards will not allow the European Is that relevant? It should be. Even if or be able to sell those vehicles to their diesel engine to be used here. you decide that you want to have an customers. I did not hear supporters of Kerry- arbitrary number selected in law now Just a couple of other points before Hollings today say they would support without a committee report, without we finish for the evening: the European diesel standard. I would consideration of any factor except po- The NAS does not recommend fuel be interested as to whether they would. tential technological feasibility—one economy goals. They have said that If they will, that has a very different of 13 factors—if you want to ignore all over and over again. They lay out the effect on our air quality. the others, surely we ought to do it in facts. We have quoted many of them on The emission standards in tier 2, a way which does not have a discrimi- our side of this issue. But they say very which are very tough, and which are natory impact on American manufac- clearly that the committee cannot em- stronger than they are in Europe, and turers. phasize strongly enough that the cost- which protect our air cannot be met by I find it incredible, I find it bizarre, efficient fuel economy levels they iden- the European diesel. Maybe someday that we would build a system that tified are not recommended fuel econ- they will be, but they cannot yet. would not say that equal vehicles by omy goals. When we heard that argument from size and manufacturer ought to be That is not what they were about. the Senator from Arizona about air treated equally. By the way, that is What they were about was to do an quality, and about being worried about also what the NAS says. analysis of various kinds of tech- NOx and the other components of smog, Here I am quoting them: nology. What are the possibilities? then what we are talking about is: Are That one concept of equity among manu- What they came up with are conclu- the proponents of the Kerry-Hollings facturers requires equal treatment of equiva- sions which we very much support. We language willing to adopt the European lent vehicles made by different manufactur- very much rely on them. The amend- diesel standards which would allow our ers. ment of Senator BOND and myself very manufacturers to use diesels of that The suggestion was made today that heavily relies on the NAS study which same quality? That will have a huge this proposal of Senators KERRY and has been referred to today. impact on CAFE standards and on the HOLLINGS would have a positive impact I think a letter from Honda was re- CAFE averages of fleets, if our manu- on air quality. I am afraid that is inac- ferred to earlier in the day, the impli- facturers can use the European diesel curate. Air quality standards are set cation being that somehow or other standard. I guarantee you that there for all light-duty vehicles on a per-mile Honda might be supportive of the would be a huge outcry in this country basis. So that the amount of any ex- Kerry-Hollings language. I want to if there were an effort made to adopt haust gases that can be emitted and read a Honda document from their gov- the European diesel standard for Amer- limited to a fixed amount per mile ernment relations folks. It says here ican manufacturers and sales here. driven, regardless of the fuel economy that the Levin-Bond amendment re- To simply say, look, they are doing it of the vehicle, makes no difference. quires NHTSA to set new standards for in Europe, they are meeting much Large vehicles, medium-sized vehicles, light trucks within 15 months. They higher CAFE standards or fleet aver- or small vehicles all have, under the support this amendment. ages in Europe than they do here, is to so-called tier 2 rules, which will soon These kinds of technological fea- completely mix apples and oranges, be- be in effect, exactly the same require- sibilities are among the factors consid- cause the difference, No. 1, in gas ment relative to emissions that go into ered in setting new standards, and, per- prices; and, No. 2, because of the dif- the air. All full-sized vehicles, includ- haps most importantly, it says: ference in the number of small cars in ing Ford’s Excursion, GM’s Suburban, We ask you to call your Senators imme- Europe, mainly because of gas prices, the Dodge Durango, the Toyota Land diately to express your support for what is but, most importantly, because of the Cruiser, have to meet the same emis- being called the Levin-Bond amendment, and percentage that diesels have of the sions as a Honda Civic or a Chevy not support alternative amendments. market in Europe. Metro. They write: Madam President, I close with this: Talking about the Chevy Metro, the Other Senators may offer amendments, but Senator KERRY, a good friend of the GM dealer, which was referred to by there are none that meet our criteria better Presiding Officer and myself, suggested Senator DURBIN, I presume, had Chevy than Levin-Bond. that maybe he and I ought to go in a Metros for sale, and could have sold all That is the Honda dealer document back room—his words—and just adopt they wanted, I assume, since they were to which I am referring. It is quite op- CAFE standards class by class for each a GM and Chevy dealer. Yet the per- posite from the implication which was of these six classes, since I pointed out centage of those small subcompacts made earlier this evening that somehow discriminatory it is to have one that were sold is less than 2 percent of how or other Honda was supportive of fleet standard for each manufacturer the entire sales of this country. They the arbitrary identification of a par- because of the different component have been available. They are highly ticular standard in the Kerry-Hollings makeup of the fleets, and how it is fuel efficient. They have some dis- language. comparing, in a very unfair way, the advantages in terms of size. But to sug- Again, Honda specifically said: American automobiles to the imports, gest, as one Chevy dealer did in a letter We ask you to call your Senators imme- and that the only fair way, in my judg- that was cited by the Senator DURBIN, diately and express your support for what is ment, is to have the same standard fuel that somehow or other General Motors being called the Levin-Bond amendment. economy for the same class vehicle.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1775 Senator KERRY, at that point, sug- ment. Unfortunately, the proposition surveillance to function in an appro- gested—again, his words—I challenge that is before us is an answer looking priate manner. you to go in a back room and set stand- for a problem. It is not a solution to I think we are glazing the eyes over ards for each class. what has happened. here, but essentially Mr. Greenspan What he pointed out, accurately, is Enron has raised many concerns re- said it is too early to do anything that our amendment does not set a garding the state of our energy mar- based on the act that we already did. standard. He wants to set a standard. kets. However, as investigations into Selling derivatives is a way for com- My answer to that is, to do so would the collapse of the company are show- panies that can’t afford risk to pass it be to adopt in law six arbitrary standing, the failure of Enron was likely due on to companies that are willing. We ards instead of one—one arbitrary to unethical and possibly illegal ac- have done that for a long time in the standard for each class. counting techniques used by executives insurance business. This is another I do not think we should legislate at the company. We need to make one form of corporate insurance. that way. I think what we ought to do thing clear: The trading of energy de- There is no indication that trading of is, at least for a brief period of time— rivatives had nothing to do with the energy derivatives contributed in any have the people who are designated by collapse of Enron. In fact, Enron’s way to the collapse of Enron. However, law as experts look at all the criteria trading platform was one of the most if, in fact, Members think we need to which are relevant to the setting of lucrative parts of the company. look at legislation in this area, we fuel economy standards, including safe- Enron is not an accounting problem; should examine it in a reasonable proc- ty, impact on jobs, cost, short-term it is not a business problem. It is prob- ess—not by offering on the floor versus long-term benefits, and the ably a fraud problem. amendments to a newly enacted piece other criteria that I mentioned. Then if During debate on the Commodities of legislation. I certainly appreciate and respect Members’ attention to ex- they do not act within 15 months, we Futures and Modernization Act, we examining the energy markets, but we have an expedited process to guarantee amined extensively the oversight and should take that through the com- that alternatives can be considered by regulation of energy derivatives. It was mittee process so Members have a the Congress by under expedited proce- done the right way. It was done with chance to hear testimony and pose dures. If they do adopt a regulation hearings, with committee markup, with floor debate. This has been questions to experts in this area. that we do not like, under existing law, It is a difficult area; it is a com- brought directly to the floor. It has by- there is a process called legislative re- plicated area. Supporters of this passed the other processes. view, under which we can veto that amendment claim that Enron has such regulation. We have that option after a What we concluded using the correct process was the proper amount of over- a large market share of this business rational process is pursued. that they were able to provide undue We can either arbitrarily select a sight for a new and emerging business. We did the debate on the Commodities influence over the energy trading. standard now, based on 1 of those 13 To the contrary, during and after the Futures and Modernization Act, and we criteria—and even that is partial—or collapse of Enron, there were no inter- examined extensively the oversight we could do something which, it seems ruptions of trading. Other market par- to me, is a lot more rational, which is and regulation of the energy deriva- ticipants stepped in and assumed vol- to tell that regulatory agency, which tives—the way it is supposed to be ume. There were no price swings or col- has that responsibility under law: done. What we concluded was the prop- lapses of the energy market. This is a These are our policies. We want you to er amount of oversight for a new and perfect example of market forces work- consider all of these criteria to adopt a emerging business had been put into ing the way they were intended. rule. If we do not like it, we are going law. The CFMA provided legal certainty to veto it. If you do not do it, we are If we start to regulate an industry for commercial parties not executed on going to have an expedited process to that is in its infancy, we run the risk of futures exchanges—legal certainty, consider it. stifling competition and reducing the taking away some of the risk, selling Madam President, I do not know if possibility of it reaching its full poten- some of the risk. This amendment there is anybody else who seeks rec- tial. could be interpreted to cover all trans- ognition. I see none. Federal Reserve Chairman Alan actions between commercial parties I yield the floor. Greenspan testified last week before conducted either by e-mail or over the I suggest the absence of a quorum. the Senate Banking Committee. I want phone. The effect of this amendment The PRESIDING OFFICER. The to echo a few of his comments regard- would likely be decreased market li- clerk will call the roll. ing the regulation of energy deriva- quidity because of increased legal and The senior assistant bill clerk pro- tives. transactional uncertainties. Addition- ceeded to call the roll. Chairman Greenspan said it was cru- ally, energy companies may be discour- Mr. LEVIN. Madam President, I ask cially important that we allow those aged from using derivatives to hedge unanimous consent the order for the types of markets to evolve amongst price risks. This could result in more quorum call be rescinded. professionals who are most capable of price volatility in energy markets, The PRESIDING OFFICER. Without protecting themselves far better than which will hurt the very consumers the objection, it is so ordered. either we, the Fed, CFTC, or the OCC legislation seeks to help. could conceivably do. The important f This amendment would also require issue is that there is a significant electronic trading exchanges to set MORNING BUSINESS downside if we regulate where we do aside capital, even if they do not par- Mr. LEVIN. Madam President, I ask not have to in this area. Because one of ticipate in trading. For instance, the unanimous consent there now be a pe- the major—and indeed the primary— Intercontinental Exchange allows buy- riod of morning business, with Sen- areas for regulation and protection of ers and sellers of energy derivatives to ators permitted to speak for up to 5 the system is counter-party surveil- exchange offers through an electronic minutes each. lance—that the individual private par- program. This exchange is already reg- The PRESIDING OFFICER. Without ties, looking at the economic events of ulated by the CFTC and gives the objection, it is so ordered. the status of the people with whom CFTC access to its trading screens. f they are doing business.... We’ve got This amendment would require the to allow that system to work, because Intercontinental Exchange to set aside ENERGY DERIVATIVES TRAINING if we step in as government regulators, capital, even though it only facilitates Mr. ENZI. Madam President, I rise to we will remove a considerable amount transactions and does not trade. This address the issue of derivatives. The of the caution that is necessary to requirement could force ICE to cease name itself would almost put people to allow those markets to evolve. And operations—forcing buyers and sellers sleep; the details of it are very com- while it may appear sensible to go in of energy derivatives into the over-the- plicated. It is a process that is done by and regulate, all of our experience is counter market. This is why CFTC major corporations, which is what that there is a significant downside Chairman Newsome has said the CFTC brings it to our attention at the mo- when you do not allow counter-party does not require this new authority.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1776 CONGRESSIONAL RECORD — SENATE March 12, 2002 Because of my concern for this issue, Another very significant event oc- IN MEMORY OF TECHNICAL I recently wrote to the Chairman of the curred yesterday. This event was the SERGEANT JOHN A. CHAPMAN Securities and Exchange Commission response of Saddam Hussein to a re- Mr. SANTORUM. Madam President, I to get his views regarding this amend- quest from the United Nations that in- rise today to recognize the heroic life ment. Mr. Pitt responded: spectors again be allowed into Iraq. of Technical Sergeant John A. Chap- The Securities and Exchange Commission Saddam Hussein in effect told us to man, whose family is from Windber, believes this legislative change is premature take a hike. He refused to allow inspec- PA. Sergeant Chapman, who was bur- at this time. tors into his country. We have not had ied today, was killed on Monday, I ask unanimous consent that this inspectors in there in over 2 years. March 4th, during a fierce firefight entire letter be printed in the RECORD. What does this mean? It is in the after his helicopter was shot down by There being no objection, the letter eyes of the beholder, but clearly he has al-Qaida fighters in Afghanistan. was ordered to be printed in the made his call. The next call has to be Sgt. Chapman, who was only 36 years RECORD, as follows: made by our President and the U.N. old, is survived by Valerie, his wife of UNITED STATES SECURITY Are we going to force our inspectors to 10 years, and by their 2 young daugh- AND EXCHANGE COMMISSION, go into Iraq? What are the cir- ters, Madison age 5, and Brianna age 3. Washington, DC, March 11, 2002. cumstances surrounding this issue? While I know that this loss is dev- Hon. MICHAEL B. ENZI, One can conjecture that if we look at astating to the entire Chapman family, U.S. Senate, Senate Russell Office Building, bin Laden, at the al-Qaida, we will wish I can confidently say to Sgt. Chap- Washington, DC. we would have taken action prior to man’s two young daughters that their DEAR SENATOR ENZI: Thank you for your letter concerning proposed amendment #2989 what occurred in association with the daddy died for a great cause and that (Congressional Record, March 7, 2002, p. terrorist attacks on New York at the this cause was to protect the world and S1685), introduced by Senator Dianne Fein- Twin Towers, the Pentagon, and the this Nation against evil people. These stein and others, to S. 517, the pending Sen- situation we are in of fighting ter- people seek to destroy the very founda- ate energy legislation. This amendment rorism. Could we have initiated an action of our country which allows all of would repeal key provisions enacted as part tion sooner? us to be free and safe and prosperous. of the Commodity Futures Modernization We could have, but we didn’t. In the As a Nation, we have been very fortu- Act (P.L. 106–534) applicable to over-the- case of Iraq, the recognition that we all nate in recent years; we have not had counter derivatives contracts in certain en- to face many casualties while defend- ergy products. are very much aware that Saddam Hus- The Securities and Exchange Commission sein is proceeding with weapons of ing our freedom. The death of Sgt believes this legislative change is premature mass destruction, many of my col- Chapman and the seven other service- at this time—barely more than a year after leagues perhaps saw the CNN hour pro- men killed last week really hit home. the CFMA’s enactment. Because of on-going gram the night before last on Iraq, the These losses are painful, but this war federal investigations, the lack of rigorous fact that he is using poison gas on has a real purpose, and a real national analysis about the CFMA’s effect on the de- some of his own people; that he has de- security implication. In my mind, the rivatives markets as a whole, and the ab- veloped mass destruction weapons with sacrifice made by these men is as im- sence of a determination about what role (if portant as any made during the great any) over-the-counter derivatives played in warheads that obviously have biologi- cal as well as perhaps nuclear capa- wars that we have fought in the past. the collapse of Enron or the California en- We never like to lose even a single life. ergy crisis of last summer, we do not believe bility, clearly a delivery system that that any action should be taken until all of would take them from Iraq to Israel, Each casualty we read about in the newspapers means the world to some- the facts are available for evaluation. one has to wonder just when we are one who has lost a father, a brother, or Thank you for giving the Commission an going to address this reality and how opportunity to comment on this legislative a friend. I grieve with the Chapman we are going to do it. proposal. family and all of the families that have Yours truly, I won’t belabor my point other than to try and draw some attention to the made this ultimate sacrifice, but it is HARVEY L. PITT, important to remember that they did Chairman. fact that, indeed, it is a time for alarm. This is a time when the United States not die in vain. Our thoughts and pray- Mr. ENZI. I ask that Members step ers are with the Chapmans as they go is importing from Iraq nearly 800,000 back and, if there is a problem, let’s through this difficult time. Sgt. Chap- barrels of oil a day. As we reflect on address it in a responsible manner man died to protect the core values how to relieve that increasing depend- through the normal process. Let’s which define our country, and we will ence, how do Members reflect upon just begin to hold hearings on energy trad- always remember him as a hero. ing, and after we have had time to how serious a threat Saddam Hussein f evaluate what we have learned, we can is to peace in the western world? How look forward to a reasonable solution. do we address our concern over the re- LOCAL LAW ENFORCEMENT ACT This is too early and takes away the ality that he has weapons of mass de- OF 2001 opportunity to sell off risk by some struction? How are we going to reflect Mr. SMITH of Oregon. Madam Presi- other companies. I ask for you to de- on just how we are going to reduce our dent, I rise today to speak about hate feat the amendment. dependence on oil from the Mideast crimes legislation I introduced with I yield the floor. when we look to the Saddam Husseins Senator KENNEDY in March of last f of this world to provide us with our year. The Local Law Enforcement Act needed oil as opposed to developing oil of 2001 would add new categories to IRAQ reserves here at home, either in the current hate crimes legislation sending Mr. MURKOWSKI. Madam President, Gulf of Mexico or in the State of Alas- a signal that violence of any kind is I refer my colleagues to an incident ka? unacceptable in our society. that has perhaps occurred without the This is a factor we will have to face I would like to describe a terrible knowledge of those who are lamenting because at some point in time, clearly, crime that occurred November 21, 1999 that our dependence on imported oil we will have to address the threat of in Maple Grove, MN. Two men shoved a has been relieved somewhat because Iraq and Saddam Hussein. It is my lesbian woman, verbally assaulted her, prices are down. hope that we can somehow prevail on and then attacked her. The assailants, I call to the attention of my col- getting inspectors in there and reliev- two 21-year-old men, were charged with leagues the fact that oil is now at a 6- ing this threat. Saddam Hussein has a hate crime in connection with the in- month high. It is over $24.50 a barrel clearly told us otherwise. He told us cident. and going up. It is the highest in 6 yesterday to go take a hike. I believe that Government’s first months. This is caused by the cartel I know the beliefs of the Chair with duty is to defend its citizens, to defend called OPEC and its commitment to regard to the national security inter- them against the harms that come out maintain a price level somewhere be- ests of our Nation as we continue to de- of hate. The Local Law Enforcement tween $22 and $28. They do that by ad- pend on unstable sources for our en- Enhancement Act of 2001 is now a sym- dressing the supply of oil on the world ergy. I wish that more Members would bol that can become substance. I be- market. concern themselves with this threat. lieve that by passing this legislation,

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1777 we can change hearts and minds as ical School on the condition that wage inequality. Families with a fe- well. women be admitted. And jazz music male head of household have the high- f would not be complete without the un- est poverty rate and comprise the ma- forgettable voice of jazz singer Billie jority of poor families. CHILDREN AND HEALTHCARE Holiday who also hailed from Balti- Women continue to be under-rep- WEEK more City. Their accomplishments and resented in high-paying professions and Mr. HOLLINGS. Madam President, talent provide inspiration not only to lag significantly behind men in enroll- each day many of our Nation’s children Marylanders, but to people all over the ment in science programs. A recent face illnesses that require a doctor’s of- globe. General Accounting Office study found fice or hospital visit. This can be a My good friend and colleague from that, after controlling for education, frightening experience, and under- Maryland, Senator BARBARA MIKULSKI, age and race, women managers still scores the need to provide quality pedi- is a tremendous example of the com- earned less than full-time male man- atric health services, while easing the mitment and dedication women give to agers. Increasing the number of senior stress children and their families feel. public service. From her background as level women in all fields begins with The week of March 18th in Greenville, a social worker to her election to the encouraging girls’ interest and aware- SC, The Greenville Hospital System U.S. Senate, Senator MIKULSKI, who ness in school illustrating that their Children’s Hospital is celebrating Chil- has served longer than any other options are limitless. dren and Healthcare Week with a num- woman currently in the Senate has al- As our population ages, we must also ber of valuable activities for health ways worked to ensure all people are address the special challenges of older care professionals, parents, and com- treated fairly. She appropriately women. Women live an average of 6 munity partners. played a key role in establishing this years longer than men. Consequently, The activities are aimed at increas- month when in 1981, she cosponsored a their reduced pay is even more detri- ing public, parental, and professional resolution establishing National Wom- mental given their increased life ex- knowledge of the improvements that en’s History Week, a predecessor to pectancy as they are forced to live on can be made in pediatric health care. Women’s History Month. Today, I wish less money for a longer period of time. In particular, it stresses new ways to to honor her dedication and service to In addition, more women over age 65 tend to live alone at a time when ill- meet the emotional and developmental the people of Maryland and this Na- ness and accidents due to decreased needs of children in health care set- tion. tings. Among the scheduled events are: While we recognize famous women, it mobility are more likely. For these women, it is imperative that we guar- continuing education classes for med- is important that we acknowledge the antee that Social Security and Medi- ical residents and support staff, an contributions of others who daily care remain solvent for future genera- awards ceremony to honor local indi- touch our lives: Our favorite teacher who gives us the confidence and knowl- tions. viduals who have dedicated their lives I believe we should use this month as edge to know that we were capable of to pediatric care, a special tribute an opportunity to reflect not only on success; the single mother or grand- service to honor children, and a family the achievements and challenges of event for employees. Lack of quality mother who toiled at a low-paying job American women, but to recognize health care should never be an impedi- for years to guarantee that the next those of women internationally. We ment to the long-term success of our generation in her family received bet- know that a variety of ills hinder the nation’s children, and I commend ter education and career opportunities; potential of women in many parts of Greenville’s dedication to Children and and the professional women who volun- the world, labor practices that oppress Healthcare Week. teer the little spare time they have to women and girls, the rapid spread of f read to children or speak to student HIV and AIDS, and limited or non-ex- groups, inspiring young people to aim istence suffrage rights. We must broad- RECOGNITION OF WOMEN’S for goals beyond what they may have HISTORY MONTH en access to education, the political otherwise imagined. process, and reproductive health glob- Mr. SARBANES. Madam President, I Women’s History Month is a fitting ally so that girls and women every- rise today in recognition of Women’s time to honor the women of the Armed where can maximize their options. To History Month. This time has been ap- Services who risk their lives in our have a credible voice in the inter- propriately designated to reflect upon fight against terrorism. From the national arena, the United States must the important contributions and heroic American Revolution and the Civil War lead by example, showing that Amer- sacrifices that women have made to through modern day armed conflict, ican women enjoy these rights fully. our Nation and to consider the chal- American women have sacrificed next During my service in Congress, I lenges they continue to face. Through- to their husbands, sons, brothers and have strongly supported efforts to ad- out our history, women have been at fathers to preserve the freedom upon dress women’s issues and eradicate the forefront of every important move- which this Nation was founded. Cur- gender discrimination and inequality. I ment for a better and more just soci- rently, more than 6,000 women in the have co-sponsored the Paycheck Fair- ety, and they have been the foundation Armed Services are courageously fight- ness Act, which would provide more ef- of our families and communities. ing in our war against terrorism and fective remedies to victims of wage dis- In Maryland, we are proud to honor almost 15 percent of the 1.4 million sol- crimination on the basis of sex. I have those women who have given so much diers volunteering in our military are also supported the Equity in Prescrip- to improve our lives. Their achieve- women. These modern day heroines, tion Insurance and Contraceptive Cov- ments illustrate their courage and te- giving of their time, knowledge, and erage Act, which would prohibit health nacity in conquering overwhelming ob- lives should not be taken for granted. insurance plans from excluding or re- stacles. They include Margaret Brent, Women have made great strides in stricting benefits for prescription con- who became America’s first woman overcoming historic adversity and bias traception if the plan covers other pre- lawyer and landholder, and Harriet but they still face many obstacles. Un- scription drugs. In order to build a na- Tubman, who risked her own life to equal pay, poverty, inadequate access tional repository of the contributions lead hundreds of slaves to freedom to healthcare and violent crime are of women to our Nation’s history, I co- through the Underground Railroad. Dr. among the challenges that continue to sponsored legislation to establish a Na- Helen Taussig, another great Mary- disproportionately affect women. tional Museum of Women’s History Ad- lander, developed the first successful Working women earn 74 cents to every visory Committee. In addition, I re- medical procedure to save ‘‘blue ba- dollar earned by men. What is more main a consistent supporter of an equal bies’’ by repairing heart birth defects. troubling is that the more education a rights amendment to the Constitution. Her efforts laid the groundwork for woman has, the wider the wage gap. I am proud of these efforts and I will modern heart surgery. We are all in- According to a recent Census Bureau continue my commitment to bring debted to Mary Elizabeth Garrett and report, the average American woman fuller equality to all women. Martha Carey Thomas who donated loses approximately $523,000 in wages While obstacles remain, women have money to create Johns Hopkins Med- and benefits over a lifetime because of achieved impressive progress. This

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1778 CONGRESSIONAL RECORD — SENATE March 12, 2002 good news includes a decline in the been more debated, with people of good pion of democracy and human rights, poverty rate for single women and an intentions on both sides of the issue. to take a stand for the rights of women increase in those holding advanced de- Consequently, I was dismayed that the and girls and ratify the convention. grees. Recent figures show women re- Bush Administration considered with- Notably absent from the list of 161 ceived approximately 45 percent of law holding the $34 million U.S. contribu- countries who have ratified the conven- and 42 percent of medical degrees tion to the United Nations Population tion, the United States joins a rather awarded in this country. This is a dra- Fund, UNFPA, an amount allocated to dubious club of non-ratifiers: Iran, matic improvement from a few decades it by law and, after months of negotia- North Korea, and Sudan. Surely this is ago and should continue as more and tions, and with bipartisan support. I not the company we want to keep. more women enter professional pro- wrote to President Bush urging him Surely we want to be known as a leader grams. not to withhold the funds as such a de- when it comes to defending the human In my home State of Maryland, as in cision would be a serious mistake and a rights of women and girl who are un- the Nation, women are a guiding force blow to U.S. leadership in combating able to defend themselves. and a major presence in our national overpopulation. Do we want to be the lone democracy business sector. From 1987 to 1999, the You simply cannot deny the impor- not to ratify? Do we want to watch number of women-owned firms in the tance of family planning assistance, es- China, the People’s Republic of Laos, United States grew by 103 percent. pecially for the very poor. There are and Iraq, countries we regularly cen- Women were responsible for 80 percent now more than 6 billion people on this sure for human rights abuses and who of the total enrollment growth at Earth. The United Nations estimates have either signed or agreed in prin- Maryland colleges and universities this figure could be 12 billion by the ciple, pass us by? throughout the last two decades. year 2050. Almost all of this growth There is no reasonable justification Indeed women continue to make will occur in the places least able to for our failure to act. Is the convention great progress. As we highlight their bear up under the pressures of massive a technically demanding agreement re- accomplishments in history this population increases. The brunt will be quiring years of study and investiga- month, I believe it is also important to in developing countries lacking the re- tion? Does it ask the United States to educate present and future generations sources needed to provide basic health go far beyond our own goals and ideals? about gender discrimination so that we or education services. Nothing could be further from the do not repeat past mistakes. America Let us strive to ensure that women truth. must remain vigilant in eradicating have access to the educational and Here is what the convention says: It these injustices. I am confident that medical resources they need to control requires States to take all appropriate the women of America will lead this their reproductive destinies and their steps to eliminate discrimination journey and continue to exemplify and health so that they will be able to bet- against women in political and public advocate for those values and ideals ter their own lives and the lives of life, law, education, employment, which are at the heart of a decent, car- their families health care, commercial transactions, ing and fair society. Everyone should recognize that and domestic relations. Nothing more, f international family planning pro- nothing less. Simplicity is the hall- grams reduce poverty, improve health, mark of this agreement. INTERNATIONAL WOMEN’S DAY and raise living standards around the Every day that goes by without rati- Mrs. FEINSTEIN. Madam President, world; they enhance the ability of cou- fication, we further risk losing our history has shown us that a Nation ples and individuals to determine the moral right to lead in the human dedicated to equal rights for women number and spacing of their children. rights revolution. By ratifying the con- and girls is a more prosperous Nation, We must counter the attacks made vention, we will demonstrate our com- a healthier Nation, a more educated by the anti-choice wing of the Repub- mitment to promoting equality and to Nation, a more just Nation, a more lican party in recent years and make it protecting women’s rights throughout peaceful Nation, and a more demo- perfectly clear that no U.S. inter- the world. By ratifying the convention, cratic Nation. Today I rise once again national family planning funds are we will send a strong message to the to add my voice and stand in solidarity spent on international abortion. international community that the U.S. with women and girls around the world It is worth noting that the Depart- understands the problems posed by dis- in their struggle for basic human ment of State recognized the vital role crimination against women, and we rights. I rise to commemorate March 8, of the UNFPA in family planning as- will not abide by it. By ratifying the 2002, International Women’s Day. sistance and provided $600,000 to the convention, we reestablish our creden- Until the entire world recognizes the Fund for sanitary supplies, clean un- tials as a leader on human rights and simple fact expressed by my friend and dergarments, and emergency infant de- women’s rights. colleague, Senator CLINTON, that livery kits for Afghan refugees in Iran, As we commemorate International ‘‘women’s rights are human rights’’ we Uzbekistan, and Tajikistan. This is Women’s Day, I call on my colleagues must continue to raise awareness just one of many examples of UNFPA’s in the Senate to move forward and rat- about the plight of women and girls commitment to bettering the lives of ify the convention on discrimination around the world and in our own coun- women and children around the world. against women. try. Indeed, while I have been encour- Since the debate is unlikely to end, Eliminating the use of rape as an in- aged by the gains made since the we must work harder to ensure that strument of war must be a high pri- United Nations first designated March the United States reclaims its leader- ority for the United States and the 8 as International Women’s Day in 1975, ship role on international family plan- international community. It is an issue there is still a great deal of work ahead ning and reproductive issues. On Inter- that continues to cause me great con- of us and I would like to take this time national Women’s Day, I urge my col- cern. to discuss several critical issues that I leagues to support full funding for the We have seen in recent years how believe are vital to the lives of women UNFPA and other international family rape has moved from being an isolated and girls and require U.S. leadership: planning programs. by-product of war to a tool used to ad- international family planning assist- Another year has gone by and I am vance war aims. In Bosnia, Rwanda, ance, the Convention on the Elimi- saddened and disappointed to note that and East Timor soldiers and militia- nation of All Forms of Discrimination the Senate still has not acted on the men used rape on a organized, system- Against Women, CEDAW, rape as an in- Convention to Eliminate All Forms of atic, and sustained basis to further strument of war, and the plight of Discrimination Against Women. It has their goal of ethnic cleansing. In some women in Afghanistan. been more than twenty years since the cases, women were kidnaped, interned Each of us, I believe, understands United States actively participated in in camps and houses, forced to do very well the issue of United States as- drafting the Convention and President labor, and subjected frequent rape and sistance to international family plan- Carter signed it on July 17, 1980. Yet, sexual assault. ning organizations. There have been we are still waiting for the United Something had to be done and so I few issues in recent years that have States, the lone superpower and cham- was pleased that the United Nations, in

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1779 setting up the war crime tribunals for cational and health care assistance for to education and health care. Not only the Balkans and Rwanda, recognized the women and children living in Af- were women precluded from contrib- rape as a war crime and a crime ghanistan and as refugees in neigh- uting to society, but they were denied against humanity. boring countries. President Bush equal protection under the law. Finally, on February 22, 2001, fol- signed the bill into law on December The attacks faced by our country lowing a period of inaction when it ap- 12, 2001. This is the first step of a long were aimed at undermining the great peared that those indicted for perpe- journey and I urge my colleagues to strides we have made in our history. trating these crimes would not be stay the course and support additional Yet the rest of the world watched as brought to justice, the international assistance in the coming years ahead. our Nation united and demonstrated tribunal in The Hague sentenced three On International Women’s Day, let that even a devastating attack could Bosnian Serbs to prison for rape during us reaffirm our commitment to a bet- not crush our spirit—an American spir- the Bosnian war. I was very pleased the ter future for the women and girls of it that has been molded by the accom- court took this step but we still have a Afghanistan. We must let them know plishments of women throughout our long ways to go. Estimates are that up that they are no longer alone, that we history, including the legacy left by a to 20,000 women in Yugoslavia were will stand by their side, and we will not well-known Illinois woman. systematically raped as part of a policy abandon them again. Jane Addams of Chicago, IL, was a of ethnic cleansing and genocide. Many We must debate and ratify the con- socially conscious community leader perpetrators still remain at large. vention on the Elimination of All who worked tirelessly to sustain the Nevertheless, the court has stated Forms of Discrimination Against American spirit. Addams founded the loud and clear that those who use rape Women. We must rededicate ourselves famous Hull House settlement in Chi- as an instrument of war will no longer and our resources to international fam- cago in 1889, where she and other resi- be able to escape justice. They will be ily planning programs. We must not ig- dents provided services for the sur- arrested, tried, and convicted. As nore the use of rape as an instrument rounding neighborhood. These vital Judge Florence Mumba of Zambia stat- of war. We must help the women and services included kindergarten and ed, ‘‘Lawless opportunists should ex- girls of Afghanistan realize their hopes daycare facilities for children of work- pect no mercy, no matter how low and dreams. ing mothers, an employment bureau, their position in the chain of command We cannot afford to remain silent. medical care, legal aid, and vocational may be.’’ We cannot afford to place women’s skills. After a few short years, the set- I commend the victims who coura- rights on a second tier of concern of tlement was serving over 2,000 people a geously came forward to confront their U.S. foreign policy. On International week. attackers and offer testimony that Women’s Day, the United States and Despite the enormous success of her helped lead to the convictions. I am the international community must charitable efforts, Addams realized hopeful more will come forward. On take a strong stand and issue a clear that real gains could not be achieved International Women’s Day, I urge the warning to those who attempt to rob without working to change laws for the administration and the international women of basic rights that the world’s better. To achieve this goal, Addams community to join me in continuing governments will no longer ignore lobbied the State of Illinois to examine the fight to end the practice of rape as these abuses, or allow them to con- laws governing child labor, the factory an instrument of war, and to pursue tinue without repercussion. inspection system, and the juvenile justice for its victims. Mr. DURBIN. Madam President, as justice system. For years when I addressed the condi- we celebrate National Women’s History As we celebrate the contributions tion of women and girls in Afghani- month, I rise to pay tribute to the ex- that women have made, the legacy of stan, I did so with a sense of sadness, traordinary women, past and present, Jane Addams reminds us of the con- anger, and despair. I now do so with a who have shaped the rich history of our tinuing need for improvement in the sense of optimism, hope, and deter- great Nation. areas of social reform that she worked mination. The month of March has been des- so tirelessly on several years ago. One of the great stories of our cam- ignated as National Women’s History Today, parents rely on childcare ar- paign against terrorism is the libera- month to celebrate the remarkable ac- rangements more than ever. The Chil- tion of the women and girls of Afghani- complishments of women throughout dren’s Defense Fund reports that an es- stan from the chains imposed on them history. My distinguished colleagues, timated 13 million children under the by the Taliban regime. We all know the Senator BARBARA MIKULSKI and Sen- age of 6 spend part of their day in the story of how women and girls were ator ORRIN HATCH, cosponsored legisla- care of someone other than their par- treated: banned from work and school, tion over 20 years ago declaring Na- ents. In Illinois, 61 percent of all chil- confined to their homes behind dark- tional Women’s History Week. I salute dren under the age of 6 have working ened windows, and required to wear my colleagues for their leadership in parents. Yet working families at all in- full-length veils, or burka, and to be establishing this now month-long cele- come levels still struggle to find the accompanied by a male relative when bration of the many contributions high-quality care their children need at in public. made by women. a cost that is affordable. Full day care Now, the women of Afghanistan, who This year’s national theme, ‘‘Women can cost between $4,000 and $10,000 per have suffered under brutal regimes and Sustaining the American Spirit,’’ could year, frequently surpassing average seen their families destroyed by war, not be more appropriate. Our Nation tuition costs for public universities. At are beginning to leave their homes prides itself on the accomplishments of the same time, the Children’s Defense without fear, earn a living, receive des- women and their ability to fully par- Fund reports that more than one out of perately needed medical attention, get ticipate in our society. I have the dis- four families with young children earns an education, and participate in public tinct privilege of working with 13 less than $25,000 per year. life. I am especially pleased that Af- women Senators who are powerful ex- Today, parents also encounter a ghanistan’s interim leader, Hamid amples of the progress that our Nation childcare system that is an uneven and Karzai, picked two women to serve in has made. This spirit of democracy was inadequate patchwork of services. his Cabinet. It is a welcome change tested on September 11, when we were States and cities vary widely in the from the past and a step toward equal reminded that our ideals continue to areas of provider education and train- rights for all Afghans. threaten those who fear the inevi- ing requirements, availability, and Clearly, there is much work to be tability of progress. quality of programs. The gap between done to improve the lives of women and As a consequence of these events, what we know is so important for chil- girls in Afghanistan and the United Americans were exposed to the dis- dren and what we put into practice is States must be actively involved in turbing plight of women in other parts too large. As a nation, we have an in- that endeavor. I was proud to co-spon- of the world. We learned that under the terest in healthy, successful children sor S. 1573, the ‘‘Afghan Women and oppressive Taliban regime, women who have the tools they need to learn Children Relief Act of 2001,’’ which au- could not work outside the home and in the classroom. We have an interest thorized the President to provide edu- were denied basic rights such as access in improving child care so that more

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1780 CONGRESSIONAL RECORD — SENATE March 12, 2002 families can move off welfare into a tional Thin Mint cookies, the GSA has ment and dedication to their goals and steady career. We have an interest in evolved to address the events of the dreams. They represent the University educating and training women so that day. From Women’s Suffrage to Civil and the Commonwealth of Kentucky in they can get jobs with decent pay to Rights to the environment, this organi- a classy and professional manner. I am support their families. As a nation, we zation has not backed away from tak- proud of each and every one of them.∑ should embrace the legacy that Jane ing a stand on the issues. They have an f Addams has left behind by working on amazing past and a bright future. I am these issues which are in desperate sure they will continue to be a force to ESSEX FELLS CELEBRATES need of reform. be reckoned with, a positive force shap- CENTENNIAL In this month of March, let us not ing the lives of tomorrow’s leaders. ∑ Mr. CORZINE. Madam President, it only celebrate the accomplishments of Congratulations to the Girl Scouts and is with great pride that I bring to your the women who have shaped our Na- thank you to all those who have con- attention a lovely hamlet in Essex tion’s rich history, but let us work to tributed their time, energy, and love to County, NJ, Essex Fells, which is cele- keep their vision alive by continuing to making this organization an American brating its centennial year on March sustain the American spirit that these success story. 31, 2002. Incorporated as a borough on women helped define. f March 31, 1902, it is governed by an f elected body consisting of a mayor and ADDITIONAL STATEMENTS six council members. CELEBRATING NINETY YEARS OF Essex Fells is the smallest commu- GIRL SCOUTS HONORING THE UNIVERSITY OF nity in Essex County, covering an area Mrs. CARNAHAN. Madam President, KENTUCKY CHEERLEADING SQUAD of a little more than 1.3 square miles. today I commend the Girl Scouts of However, within the small confines of ∑ Mr. BUNNING. Madam President, America on the anniversary of its 90th this bucolic community, Essex Fells today I have the privilege and honor of year of operation. maintains many areas for the enjoy- sharing with my fellow colleagues the The objective of the Girl Scouts is ment of its residents. The Glen is a most recent and astounding accom- ‘‘to discover the fun, friendship, and green open space that contains native plishment of the University of Ken- power of girls together.’’ Experiences trees, shrubs, vines, and flowers. The tucky Cheerleading squad. This year such as field trips, community service, Trotter Tract is an 83-acre area that is the UK Cheerleaders won their eighth and working with others help them to home to many species of flora and straight Universal Cheerleaders Asso- develop their full potential. These ac- fauna and beautiful nature trails. Each ciation’s, UCA’s, National College tions are greatly needed in America autumn, the brook that runs through and an amazing feat when you consider Cheerleading Championship for NCAA Division 1–A schools. These young men Essex Fells is dammed to crate a skat- that 99 percent of all adults that par- ing pond. Grover Cleveland Park, a ticipate in leading the Girl Scouts are and women deserve our recognition and admiration for their efforts. county park of approximately 42 acres volunteers. The effects of this organi- of lush manicured lawns and large zation extend not from one generation The UK squad has now won UCA’s trees, borders Essex Fells and Caldwell, but to many, with the oldest active National Championship an unprece- NJ. member being 97, and the youngest, the dented twelve times, in 1985, 1987, 1988, 1992, and 1995–2002, more than any other Rich in history, the township was es- new Brownie, starting out at age 5. tablished in 1699 by Robert Treat and The Girl Scouts is a quintessential Division 1–A school. In fact they are Jasper Crane and settled by people mi- American institution that has exported the only squad to ever win back to grating from Connecticut. A land its successful strategy to 140 countries, back championships twice and also the blessed with rolling farmland and and a worldwide family of 8.5 million only team to win three, four, five, six, wooded retreats, the acreage was origi- girls. The Girl Scouts participate in seven, and now eight titles in a row. cultural exchanges that allow many to They are widely recognized as the best nally named Newark after their home gather worldwide experiences that they of the best in the Cheerleading commu- in England—Newark on Trent. Shortly otherwise would not have been able to nity and have been a key contributor after that, the settlers petitioned the attain. There is even a bi-partisan to the University’s athletic success. crown for the title to their new home- Troop Capitol, made up of Congres- The Wildcat basketball team is argu- land. It was granted and in 1701 the set- sional members from both the Senate ably the most storied program in the tlers purchased an additional 13,500 and House. The women of the Senate Nation and much of their success can acres from the Native Americans for have dedicated the book Nine and be attributed to the enthusiasm and $325,000. Realizing the value of this Counting to the girls of America, with spirit generated by the Cheerleading land, the Crown attempted to rescind some of the proceeds going to the Girl squad. For those who have never had the settlers’ title and the colonists sub- Scouts. the opportunity of seeing a game in sequently revolted earning the area the The GSA has spent much of its time Rupp Arena, I can tell you that the at- nickname, ‘‘the cockpit of the Amer- teaching young women about profes- mosphere is absolutely electric. ican Revolution.’’ sional fields that do not ordinarily at- Besides the attention they receive on In the late 1800s, Anthony J. Drexel, tract women. The past year’s focus was the court from the UK students and of the Philadelphia banking family, the field of engineering. The girls not fans, the Cheerleading squad has also who had successfully developed other only studied engineering but also had been covered by the national media. residential communities acquired the the opportunity for a hands-on ap- The squad has been featured on such estate of General William Gould to proach, thanks to the Society of programs as, ‘‘Evening News,’’ Connie form a planned residential community. Women Engineers donating their time. Chung’s ‘‘Eye to Eye,’’ and the ‘‘CBS Named for Drexel’s son-in-law—John Girls succeed when we set the bar high Morning Show,’’ as well as in ‘‘South- R. Fell and the county, Essex—Essex for them. The Girl Scouts gives them ern Living,’’ ‘‘Gentlemen’s Quarterly,’’ Fells developed as many turn of the the skills, but more importantly the ‘‘ESPN the Magazine,’’ and ‘‘Seven- century communities did, as a direct confidence, to reach these goals and be- teen’’ magazines. This recognition does result of the growth of the railroad sys- yond. not come without a price however. tem. All the same, much care was We must thank Juliette Gordon Low, These young men and women sacrifice given to maintain the tranquility and who on this day in 1912 founded the a considerable amount of their time serenity of the original community. Girl Scouts. Her desire and foresight to and energy practicing, learning, and One hundred years later, Essex Fells create an organization for young girls mastering their extremely difficult is still an ideal ‘‘small town commu- started with 18 girls and a budget that routines. This often means long prac- nity.’’ The neighborhoods remain tree- was funded by selling her pearl neck- tices and endless hours in the weight lined and neighbors know each other. lace. It has become one of the most rec- room. These young men and women are Most recently, citizens of Essex Fells ognized organizations in America. athletes in every sense of the word. were called into service following the Though some traditions thankfully I applaud the University of Kentucky horrific attacks on the World Trade remain steadfast, notably the excep- Cheerleading squad for their commit- Center. Fire Chief Rupert Hauser and

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1781 the Essex Fells Volunteer Fire Depart- from the President of the United PRESIDENTIAL MESSAGE ment immediately deployed to New States submitting a withdrawal and The following presidential message York to cover station houses for New sundry nominations which were re- was laid before the Senate together York firefighters while they worked at ferred to the Committee on Armed with accompanying reports, which was Ground Zero on the search and rescue Services. referred as indicated: efforts. (The nominations received today are PM–74. A message from the President of I invite my colleagues to join me in printed at the end of the Senate pro- the United States, transmitting, pursuant to congratulating Mayor Edward Abbott ceedings.) law, the Periodic Report on Telecommuni- and the citizens of Essex Fells on their f cations Payments Made to Cuba pursuant to Treasury Department Specific Licenses; to centennial. May they have another PRESIDENTIAL MESSAGE hundred years of prosperity and com- the Committee on Foreign Relations. munity.∑ The following presidential message To the Congress of the United States: was laid before the Senate together As required by section 1705(e)(6) of f with accompanying reports, which was the Cuban Democracy Act of 1992, as TWO CALIFORNIA TEAMS ON referred as indicated: amended by section 102(g) of the Cuban CHAMPIONS DAY PM–73. A message from the President of Liberty and Democratic Solidarity ∑ Mrs. BOXER. Madam President, the United States, transmitting, pursuant to (LIBERTAD) Act of 1996, 22 U.S.C. law, the Agreement Between the Govern- 6004(e)(6), I transmit herewith a semi- today I would like to honor two na- ment of the United States of America and tional collegiate championship teams the Government of Australia on Social Secu- annual report prepared by my Adminis- from my State of California. They are rity; to the Committee on Finance. tration detailing payments made to Cuba by United States persons as a re- great examples of team spirit and co- To the Congress of the United States: operation: the Santa Clara University Pursuant to section 233(e)(1) of the sult of the provision of telecommuni- women’s soccer team and the Stanford Social Security Act, as amended by the cations services pursuant to Depart- University women’s volleyball team. Social Security Amendments of 1977 ment of the Treasury specific licenses. The Santa Clara University women’s (Public Law 95–216, 42 U.S.C. 433(e)(1)), GEORGE BUSH. THE WHITE HOUSE, March 12, 2002. soccer team won the 2001 NCAA College I transmit herewith the Agreement Be- Cup Championship this past fall. The tween the Government of the United f team won its first national title in States of America and the Government EXECUTIVE AND OTHER their fifth trip to the College Cup, and of Australia on Social Security, which COMMUNICATIONS this is the first outright NCAA cham- consists of two separate instruments: a The following communications were pionship in the school’s history. principal agreement and an adminis- The members of the 2001 Santa Clara laid before the Senate, together with trative arrangement along with a para- accompanying papers, reports, and doc- University women’s soccer team are: graph-by-paragraph explanation of Holly Azevedo; Jessica Ballweg; Emma uments, which were referred as indi- each provision. The Agreement was cated: Borst; Lana Bowen; Jaclyn Campi; signed at Canberra on September 27, Kristi Candau; Ynez Carrasco; Kerry EC–5699. A communication from the Execu- 2001. tive Officer, Civil Division, Department of Cathcart; Devvyn Hawkins; Bree The United States-Australia Agree- Justice, transmitting, pursuant to law, the Horvath; Anna Kraus; Leslie Osborne; ment is similar in objective to the so- report of a rule entitled ‘‘September 11th Erin Pearson; Chardonnay Poole; Erin cial security agreements already in Victim Compensation Fund of 2001’’ Sharpe; Katie Sheppard; Danielle force with Austria, Belgium, Canada, ((RIN1105–AA79)(CIV104F)) received on March Slaton; Alyssa Sobolik; Taline Chile, Finland, France, Germany, 8, 2002; to the Committee on the Judiciary. Tahmassian; Allie Teague; Aly Wagner; Greece, Ireland, Italy, Korea, Luxem- EC–5700. A communication from the Ad- and Veronica Zepeda. bourg, the Netherlands, Norway, Por- ministrator of the Rural Utilities Service, Department of Agriculture, transmitting, I congratulate the team and their tugal, Spain, Sweden, Switzerland, and pursuant to law, the report of a rule entitled head coach, Jerry Smith. the United Kingdom. Such bilateral ‘‘Extensions of Payments of Principal and The Stanford University women’s agreements provide for limited coordi- Interest’’ (RIN0572–AB60) received on March volleyball team won the 2001 NCAA Na- nation between the United States and 4, 2002; to the Committee on Agriculture, Nu- tional Championship this past fall. The foreign social security systems to trition, and Forestry. team won its fifth national champion- eliminate dual social security coverage EC–5701. A communication from the Ad- ship, which is a record. and taxation, and to help prevent the ministrator of the Rural Utilities Service, The members of the 2001 Stanford Department of Agriculture, transmitting, lost benefit protection that can occur pursuant to law, the report of a rule entitled University women’s volleyball team when workers divide their careers be- ‘‘Treasury Rate Direct Loan Program’’ are: Michelle Chambers; Tara Conrad; tween two countries. The United (RIN0572–AB71) received on March 4, 2002; to Sara Dukes; Leahi Hall; Jennifer Har- States-Australia Agreement contains the Committee on Agriculture, Nutrition, vey; Jennifer Hucke; Ashley Ivy; Emily all provisions mandated by section 233 and Forestry. Lawrence; Robyn Lewis; Sara McGee; and other provisions that I deem appro- EC–5702. A communication from the Prin- Ogonna Nnamani; Anna Robinson; Sara priate to carry out the purposes of sec- cipal Deputy Associate Administrator of the Sandrik; and Logan Tom. tion 233, pursuant to section 233(c)(4). Environmental Protection Agency, transmitting, pursuant to law, the report of a rule en- I congratulate the team and their I also transmit for the information of titled ‘‘Pesticide Tolerance Processing Fees’’ head coach, John Dunning. the Congress a report prepared by the (FRL6774–3) received on March 8, 2002; to the Both teams are an inspiration to all, Social Security Administration ex- Committee on Agriculture, Nutrition, and especially to young women and girls plaining the key points of the Agree- Forestry. who are themselves members of sports ment. Annexed to this report is the re- EC–5703. A communication from the Prin- teams. I wish all the team members the port required by section 233(e)(1) of the cipal Deputy Associate Administrator of the best in whatever road they find them- Social Security Act, a report on the ef- Environmental Protection Agency, transmit- fect of the Agreement on income and ting, pursuant to law, the report of a rule en- selves on after this great accomplish- titled ‘‘2,4–D; Time-Limited Pesticide Toler- ment.∑ expenditures of the U.S. Social Secu- ance’’ (FRL6827–1) received on March 8, 2002; f rity program and the number of indi- to the Committee on Agriculture, Nutrition, viduals affected by the Agreement. The and Forestry. MESSAGES FROM THE PRESIDENT Department of State and the Social Se- EC–5704. A communication from the Chief Messages from the President of the curity Administration have rec- of the Regulations Unit, Internal Revenue United States were communicated to ommended the Agreement and related Service, Department of the Treasury, trans- the Senate by his secretaries. documents to me. mitting, pursuant to law, the report of a rule I commend the United States-Aus- entitled ‘‘Treatment of Community Income f for Certain Individuals not Filing Joint Re- tralia Social Security Agreement and EXECUTIVE MESSAGES REFERRED turns’’ (RIN1545–AY83) received on March 1, related documents. 2002; to the Committee on Finance. As in executive session the Presiding GEORGE W. BUSH. EC–5705. A communication from the Chief Officer laid before the Senate messages THE WHITE HOUSE, March 12, 2002. of the Regulations Unit, Internal Revenue

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1782 CONGRESSIONAL RECORD — SENATE March 12, 2002 Service, Department of the Treasury, trans- EC–5716. A communication from the Prin- Jeanette J. Clark, of the District of Colum- mitting, pursuant to law, the report of a rule cipal Deputy Associate Administrator of the bia, to be an Associate Judge of the Superior entitled ‘‘Bureau of Labor Statistics Price Environmental Protection Agency, transmit- Court of the District of Columbia for the Indexes for Department Stores—October ting, pursuant to law, the report of a rule en- term of fifteen years. 2001’’ (Rev. Rul. 2002–4) received on March 1, titled ‘‘National Emission Standards for Haz- *Louis Kincannon, of Virginia, to be Direc- 2002; to the Committee on Finance. ardous Air Pollutants: Solvent Extraction tor of the Census. EC–5706. A communication from the Chief for Vegetable Oil Production’’ (FRL7155–9) By Mr. KERRY for the Committee on of the Regulations Unit, Internal Revenue received on March 8, 2002; to the Committee Small Business and Entrepreneurship. Service, Department of the Treasury, trans- on Environment and Public Works. *Melanie Sabelhaus, of Maryland, to be mitting, pursuant to law, the report of a rule EC–5717. A communication from the Prin- Deputy Administrator of the Small Business entitled ‘‘Funding Relief Contained in Sec- cipal Deputy Associate Administrator of the Administration. tion 112 of the Victims of Terrorism Tax Re- Environmental Protection Agency, transmit- lief Act of 2001’’ (Notice 2002–7) received on ting, pursuant to law, the report of a rule en- *Nomination was reported with rec- March 1, 2002; to the Committee on Finance. titled ‘‘National Emission Standards for Haz- ommendation that it be confirmed sub- EC–5707. A communication from the Chief ardous Air Pollutants for Source Categories: ject to the nominee’s commitment to of the Regulations Unit, Internal Revenue General Provisions and Requirements for respond to requests to appear and tes- Service, Department of the Treasury, trans- Control Technology Determinations for tify before any duly constituted com- mitting, pursuant to law, the report of a rule Major Sources in Accordance with Clean Air mittee of the Senate. entitled ‘‘Time for Performing Certain Acts Act Sections, Sections 112(g) and 112(j)’’ (Nominations without an asterisk Postponed by Reason of Service in a Combat (FRL7155–8) received on March 8, 2002; to the Zone or a Presidentially Declared Disaster’’ Committee on Environment and Public were reported with the recommenda- (Rev. Rul. 2001–53) received on March 8, 2002; Works. tion that they be confirmed.) to the Committee on Finance. EC–5718. A communication from the Prin- f EC–5708. A communication from the Chief cipal Deputy Associate Administrator of the of the Regulations Unit, Internal Revenue Environmental Protection Agency, transmit- INTRODUCTION OF BILLS AND Service, Department of the Treasury, trans- ting, pursuant to law, the report of a rule en- JOINT RESOLUTIONS mitting, pursuant to law, the report of a rule titled ‘‘Hazardous Waste Management Sys- entitled ‘‘Equity Investment Prior to Sec- tems; Definition of Solid Waste; Toxicity The following bills and joint resolution 45D9(f)(2) Allocation’’ (Notice 2001–75) Characteristic’’ (FRL7157–2) received on tions were introduced, read the first received on March 4, 2002; to the Committee March 8, 2002; to the Committee on Environ- and second times by unanimous con- on Finance. ment and Public Works. sent, and referred as indicated: EC–5709. A communication from the Chief EC–5719. A communication from the Prin- By Mr. GRAHAM (for himself, Mr. of the Regulations Unit, Internal Revenue cipal Deputy Associate Administrator of the HATCH, Mr. JEFFORDS, Mr. KERRY, Service, Department of the Treasury, trans- Environmental Protection Agency, transmit- and Mr. TORRICELLI): mitting, pursuant to law, the report of a rule ting, pursuant to law, the report of a rule en- S. 2006. A bill to amend the Internal Rev- entitled ‘‘Revenue Procedure—Update of titled ‘‘Designation of Areas for Air Quality enue Code of 1986 to clarify the eligibility of Rev. Proc. 2001–11 (Adequate Disclosure)’’ Planning Purposes; Ohio; Technical Amend- certain expenses for the low-income housing (Rev. Rul. 2001–52) received on March 8, 2002; ment’’ (FRL7155–2) received on March 8, 2002; credit; to the Committee on Finance. to the Committee on Finance. to the Committee on Environment and Pub- By Mr. INHOFE: EC–5710. A communication from the Chief lic Works. of the Regulations Unit, Internal Revenue EC–5720. A communication from the Prin- S. 2007. A bill to provide economic relief to Service, Department of the Treasury, trans- cipal Deputy Associate Administrator of the general aviation entities that have suffered mitting, pursuant to law, the report of a rule Environmental Protection Agency, transmit- substantial economic injury as a result of entitled ‘‘Mark-to-Market Election Under ting, pursuant to law, the report of a rule en- the terrorist attacks perpetuated against the TRA ’97 for Principal Residences’’ (Rev. Rul. titled ‘‘Approval of the Clean Air Act Sec- United States on September 11, 2001; to the 2001–57) received on March 8, 2002; to the tion 111 and 112 Delegation of Authority Up- Committee on Banking, Housing, and Urban Committee on Finance. dates to the Washington State Department Affairs. EC–5711. A communication from the Chief of Ecology, Benton Clean Air Authority, By Mr. GREGG: of the Regulations Unit, Internal Revenue Northwest Air Pollution Authority, Puget S. 2008. A bill to prohibit certain abortion- Service, Department of the Treasury, trans- Sound Clean Air Agency, and Spokane Coun- related discrimination in governmental ac- mitting, pursuant to law, the report of a rule ty Air Pollution Control Authority’’ tivities; to the Committee on Health, Edu- entitled ‘‘Proposed Revenue Procedure Re- (FRL7153–2) received on March 8, 2002; to the cation, Labor, and Pensions. garding the Cash Method’’ (Notice 2001–76) Committee on Environment and Public By Mr. DURBIN (for himself, Ms. COL- received on March 8, 2002; to the Committee Works. LINS, and Ms. SNOWE): on Finance. EC–5721. A communication from the Prin- S. 2009. A bill to amend the Public Health EC–5712. A communication from the Chief cipal Deputy Associate Administrator of the Service Act to provide services for the pre- of the Regulations Unit, Internal Revenue Environmental Protection Agency, transmit- vention of family violence; to the Committee Service, Department of the Treasury, trans- ting, pursuant to law, the report of a rule en- on Health, Education, Labor, and Pensions. mitting, pursuant to law, the report of a rule titled ‘‘Approval and Promulgation of State By Mr. LEAHY (for himself, Mr. entitled ‘‘Rev. Proc. 2001–59—2002 Inflation- Implementation Plans; Indiana’’ (FRL7155–3) DASCHLE, Mr. DURBIN, and Mr. HAR- Adjusted Items’’ (Rev. Proc. 2001–59) received received on March 8, 2002; to the Committee KIN): on March 8, 2002; to the Committee on Fi- on Environment and Public Works. S. 2010. A bill to provide for criminal pros- nance. EC–5722. A communication from the Prin- ecution of persons who alter or destroy evi- EC–5713. A communication from the Prin- cipal Deputy Associate Administrator of the dence in certain Federal investigations or cipal Deputy Associate Administrator of the Environmental Protection Agency, transmit- defraud investors of publicly traded securi- Environmental Protection Agency, transmitting, pursuant to law, the report of a rule en- ties, to disallow debts incurred in violation ting, pursuant to law, the report of a rule entitled ‘‘Approval and Promulgation of Air of securities fraud laws from being dis- titled ‘‘Withdrawal of the Federal Des- Quality Implementation Plans; Maine; Con- charged in bankruptcy, to protect whistle- ignated Use for Shields Gulch in Idaho’’ trol of Gasoline Volatility’’ (FRL7152–1) re- blowers against retaliation by their employ- (FRL7157–1) received on March 8, 2002; to the ceived on March 8, 2002; to the Committee on ers, and for other purposes; to the Com- Committee on Environment and Public Environment and Public Works. mittee on the Judiciary. Works. EC–5723. A communication from the Prin- EC–5714. A communication from the Prin- cipal Deputy Associate Administrator of the f cipal Deputy Associate Administrator of the Environmental Protection Agency, transmit- ADDITIONAL COSPONSORS Environmental Protection Agency, transmitting, pursuant to law, the report of a rule en- ting, pursuant to law, the report of a rule entitled ‘‘Acquisition Regulation: Administra- S. 532 titled ‘‘Unregulated Contaminant Moni- tive Changes and Technical Amendments’’ At the request of Mr. DORGAN, the toring Regulation for Public Water Systems; (7155–7) received on March 8, 2002; to the name of the Senator from Michigan Establishing of Reporting Date’’ (FRL7157–3) Committee on Environment and Public (Mr. LEVIN) was added as a cosponsor of received on March 8, 2002; to the Committee Works. on Environment and Public Works. S. 532, a bill to amend the Federal In- EC–5715. A communication from the Prin- f secticide, Fungicide, and Rodenticide cipal Deputy Associate Administrator of the EXECUTIVE REPORTS OF Act to permit a State to register a Ca- Environmental Protection Agency, transmit- COMMITTEES nadian pesticide for distribution and ting, pursuant to law, the report of a rule en- use within that State. titled ‘‘Perfluoroalkyl Sulfonates; Signifi- The following executive reports of cant New Use Rule’’ (FRL6823–6) received on committees were submitted: S. 839 March 8, 2002; to the Committee on Environ- By Mr. LIEBERMAN for the Committee on At the request of Mr. CLELAND, his ment and Public Works. Governmental Affairs. name was added as a cosponsor of S.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1783 839, a bill to amend title XVIII of the S. 1760 Congress to be held in New York City, Social Security Act to increase the At the request of Mr. THOMAS, the New York. amount of payment for inpatient hos- names of the Senator from South Da- f pital services under the medicare pro- kota (Mr. JOHNSON) and the Senator STATEMENTS ON INTRODUCED gram and to freeze the reduction in from Oklahoma (Mr. INHOFE) were BILLS AND JOINT RESOLUTIONS payments to hospitals for indirect added as cosponsors of S. 1760, a bill to costs of medical education. amend title XVIII of the Social Secu- By Mr. GRAHAM (for himself, S. 940 rity Act to provide for the coverage of Mr. HATCH, Mr. JEFFORDS, Mr. At the request of Mr. DODD, the name marriage and family therapist services KERRY, and Mr. TORRICELLI): of the Senator from New Jersey (Mr. and mental health counselor services S. 2006. A bill to amend the Internal CORZINE) was added as a cosponsor of S. under part B of the medicare program. Revenue Code of 1986 to clarify the eli- 940, a bill to leave no child behind. and for other purposes. gibility of certain expenses for the low- S. 946 S. 1786 income housing credit; to the Com- mittee on Finance. At the request of Ms. SNOWE, the At the request of Mr. DURBIN, the Mr. GRAHAM. Madam President, name of the Senator from Hawaii (Mr. names of the Senator from North Da- today I am introducing legislation that INOUYE) was added as a cosponsor of S. kota (Mr. CONRAD) and the Senator will improve the effectiveness of one of 946, a bill to establish an Office on from Hawaii (Mr. AKAKA) were added as the most effective programs we have to Women’s Health within the Depart- cosponsors of S. 1786, a bill to expand help Americans get affordable housing, ment of Health and Human Services. aviation capacity in the Chicago area. the Low Income Housing Tax Credit. I S. 952 S. 1860 am proud to be joined in this effort by At the request of Mr. GREGG, the At the request of Mr. DORGAN, the names of the Senator from Maryland my esteemed colleagues Senator name of the Senator from Minnesota HATCH, Senator JEFFORDS, Senator (Ms. MIKULSKI), the Senator from New (Mr. DAYTON) was added as a cosponsor KERRY and Senator TORRICELLI. Mexico (Mr. BINGAMAN), and the Sen- of S. 1860, a bill to reward the hard The Low Income Housing Tax Credit ator from Maine (Ms. COLLINS) were work and risk of individuals who was created in 1986 to attract private added as cosponsors of S. 952, a bill to choose to live in and help preserve sector capital to the affordable housing provide collective bargaining rights for America’s small, rural towns, and for market. It has been the major engine public safety officers employed by other purposes. for financing the production of low in- States or their political subdivisions. S. 1918 come multi-family housing. The pro- S. 960 At the request of Ms. COLLINS, the gram offers developers and investors in At the request of Mr. CLELAND, his names of the Senator from Michigan affordable housing credit against their name was added as a cosponsor of S. (Ms. STABENOW) and the Senator from Federal income tax in return for their 960, a bill to amend title XVIII of the Arkansas (Mr. HUTCHINSON) were added investment. Since its inception, the Social Security Act to expand coverage as cosponsors of S. 1918, a bill to ex- Low Income Housing Tax Credit has as- of medical nutrition therapy services pand the teacher loan forgiveness pro- sisted in the development and avail- under the medicare program for bene- grams under the guaranteed and direct ability of roughly 850,000 new and reha- ficiaries with cardiovascular diseases. student loan programs for highly quali- bilitated units of affordable housing. S. 1210 fied teachers of mathematics, science, Last fall, the Internal Revenue Serv- At the request of Mr. CAMPBELL, the and special education, and for other ice issued its first guidance in the pro- name of the Senator from Wisconsin purposes. gram’s 16 year history. That guidance (Mr. FEINGOLD) was added as a cospon- S. 1924 was issued in the form of several tech- sor of S. 1210, a bill to reauthorize the At the request of Mr. LIEBERMAN, the nical advice memoranda, or TAMs, and Native American Housing Assistance specified which development costs will and Self-Determination Act of 1996. name of the Senator from Georgia (Mr. MILLER) was added as a cosponsor of S. be eligible and ineligible for the credit, S. 1475 1924, a bill to promote charitable giv- known as eligible basis. At the request of Mr. BREAUX, the ing, and for other purposes. TAMs are not official guidance, re- name of the Senator from New Jersey viewed by the Treasury Department, S. 1931 (Mr. TORRICELLI) was added as a co- but instead, IRS legal opinion pro- At the request of Mr. LIEBERMAN, the sponsor of S. 1475, a bill to amend the viding direction to IRS agents con- name of the Senator from Louisiana Internal Revenue Code of 1986 to pro- ducting audits. They are not citable in (Ms. LANDRIEU) was added as a cospon- vide an appropriate and permanent tax court proceedings because they are not sor of S. 1931, a bill to amend title structure for investments in the Com- official guidance. In the absence of offi- XVIII of the Social Security Act to im- monwealth of Puerto Rico and the pos- cial guidance, TAMs could be taken as prove patient access to, and utilization sessions of the United States, and for the official government position. In of, the colorectal cancer screening ben- other purposes. fact, that is exactly what is happening. efit under the Medicare Program. S. 1606 The IRS’s position is contrary to com- At the request of Mr. NELSON of Flor- S. RES. 207 mon industry practice, and eliminates ida, the name of the Senator from Flor- At the request of Mr. BINGAMAN, the many reasonable, legitimate and nec- ida (Mr. GRAHAM) was added as a co- names of the Senator from Montana essary costs from the tax credit. This sponsor of S. 1606, a bill to amend title (Mr. BURNS), the Senator from Dela- has caused uncertainty among inves- XI of the Social Security Act to pro- ware (Mr. CARPER), the Senator from tors as to whether the credits for which hibit Federal funds from being used to New Jersey (Mr. CORZINE), the Senator they have been paid, will be realized. provide payments under a Federal from South Dakota (Mr. DASCHLE), the Moreover, these guidelines could ad- health care program to any health care Senator from Wisconsin (Mr. KOHL), versely affect the ability of States to provider who charges a membership of the Senator from Arkansas (Mrs. LIN- target affordable housing to those who any other extraneous or incidental fee COLN), and the Senator from Montana need it the most. to a patient as a prerequisite for the (Mr. BAUCUS) were added as cosponsors It is important to understand, this provision of an item or service to the of S. Res. 207, a resolution designating legislation will not increase the num- patient. March 31, 2002, and March 31, 2003, as ber of low-income housing tax credits S. 1749 ‘‘National Civilian Conservation Corps available. The maximum amount of At the request of Mr. KENNEDY, the Day.’’ credits that states may allocate to de- names of the Senator from Louisiana S. CON. RES. 84 velopers of affordable housing prop- (Ms. LANDRIEU) and the Senator from At the request of Mr. SCHUMER, the erties is set by the Internal Revenue Idaho (Mr. CRAIG) were added as co- name of the Senator from New Mexico Code. Thanks to legislation that we en- sponsors of S. 1749, a bill to enhance (Mr. BINGAMAN) was added as a cospon- acted in 2000, the amount available to the border security of the United sor of S. Con. Res. 84, a concurrent res- each state has increased from $1.50 to States, and for other purposes. olution providing for a joint session of $1.75 times the State’s population.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1784 CONGRESSIONAL RECORD — SENATE March 12, 2002 That 40 percent increase is expected to be a full review of the effect of the po- I ask unanimous consent that the produce about 30,000 more units a year. sitions set forth in the TAMs anytime text of this bill be printed in the Since the unmet demand for affordable soon. RECORD. housing is many times greater than This legislation would amend Section There being no objection, the bill was what can be built with the help of the 42(d) of the Internal Revenue Code to ordered to be printed in the RECORD, as credit, our legislation should not affect specify that various associated devel- follows: revenues. In fact, the only way for this opment costs are to be included in eli- S. 2006 legislation to have a revenue impact is gible basis. In many cases, the largest Be it enacted by the Senate and House of Rep- if the legislation makes it easier for item excluded from eligible basis under resentatives of the United States of America in Congress assembled, the States to use the credits we intend the TAMs is ‘‘impact fees.’’ Impact fees SECTION 1. ELIGIBILITY OF CERTAIN EXPENSES for them to have under present law. are fees required by the Government FOR LOW-INCOME HOUSING CREDIT. What this legislation does do, how- ‘‘as a condition to the development’’ (a) IN GENERAL.—Subsection (d) of section ever, is very important. To understand and considered ineligible because they 42 of the Internal Revenue Code of 1986 (re- its importance, it may be useful to are one-time costs, unlike building per- lating to low-income housing credit) is have a little background on how the mits which need to be renewed each amended by adding at the end the following new paragraph: low-income housing tax credit works. time a building is built. These fees ‘‘(8) ASSOCIATED DEVELOPMENT COSTS IN- In economic terms, the credit is eq- cover a wide range of infrastructure uity financing which replaces a portion CLUDED IN BASIS.— improvements including sewer lines, ‘‘(A) IN GENERAL.—Solely for purposes of of debt that would otherwise be nec- schools, and roads. Certainly, whether this section, associated development costs essary to finance a property. By replac- or not they are includible in basis for shall be taken into account in determining ing debt, credits work to reduce inter- the purpose of calculating the amount the basis of any building which is part of a est costs. This allows a property owner of tax credit, these costs will be in- low-income housing project to the extent not to offer lower rents than otherwise curred and will impact the economics otherwise so taken into account. would be the case. ‘‘(B) ASSOCIATED DEVELOPMENT COSTS.—For of the property. As I mentioned pre- purposes of subparagraph (A), the term ‘asso- The most unique feature of the pro- viously, the IRS has recently addressed gram is that State Housing Finance ciated development costs’ means, with re- the inclusion of impact fees in eligible spect to any building, such building’s allo- Agencies award Federal tax credits to basis, but not other costs directly re- cable share of— developers of rental housing. Since lated to building construction. ‘‘(i) any cost incurred in preparing the site these agencies have considerable flexi- Other items that would be severely which is reasonably related to the develop- bility in how they distribute the cred- ment of the qualified low-income housing restricted or excluded from eligible its, developers compete for the limited project of which the building is a part, basis under the interpretations ex- number of tax credits by submitting ‘‘(ii) any fee imposed by a State or local pressed in the TAMs are site prepara- project proposals. The Housing Finance government as a condition to development of tion costs, development fees, profes- Agencies rate the proposals, and allo- such project, sional fees related to developing the ‘‘(iii) any reasonable fee paid to any devel- cate credits to individual properties property, and construction financing oper of such project, based on criteria provided in the Inter- costs. The legislation we are intro- ‘‘(iv) any professional fee relating to any nal Revenue Code, and on the State’s ducing today will clarify that any cost item includible in the basis of the building particular housing needs and priorities. pursuant to this paragraph, and The amount of credits a State may incurred in preparing a site which is ‘‘(v) any cost of financing attributable to allocate to a particular property is also reasonably related to the development construction of the building (without regard limited by the Internal Revenue Code. of a qualified low income housing prop- to the source of such financing) which is re- The limit is determined as percentage erty, any reasonable fee paid to the de- quired to be capitalized.’’ veloper, any professional fee relating (b) EFFECTIVE DATE.—The amendments of the basis of a property. The basis is, made by this section shall apply to— generally speaking, the costs of con- to an item includible in basis, and any cost of financing attributable to con- (1) housing credit dollar amounts allocated structing a building that is part of an after December 31, 2001, and affordable housing project. Non-feder- struction of the building is includible (2) buildings placed in service after such ally subsidized new construction may in basis for the purpose of calculating date to the extent paragraph (1) of section receive a 9-percent credit. Existing the maximum amount of credit a state 42(h) of the Internal Revenue Code of 1986 buildings and new buildings receiving may allocate to a low-income housing does not apply to any building by reason of property. paragraph (4) thereof, but only with respect other Federal subsidies may get a 4- to bonds issued after such date. percent credit. The intent of these clarifications is The problem at hand is this. The IRS simply to codify common industry Mr. JEFFORDS. Mr. President, today takes the position that certain con- practice before the issuance of the I join with my colleagues on the Fi- nance Committee, Senators GRAHAM struction costs should not be included TAMs. Not only will the legislation and HATCH, to introduce legislation to in basis. This position makes a large allow the low-income tax credit pro- clarify the rules governing the low-in- number of affordable housing prop- gram to provide better quality housing come housing tax credit. This tax cred- erties financially infeasible, and weak- at lower rental rates than would be possible if the positions taken in the it has played a critical role in the con- ens the economics of those that still struction and renovation of housing for pass minimum underwriting require- TAMs are followed, but clarification will help simplify administration of low-income Americans. ments. The loss of equity would surely The Internal Revenue Service has the credit by giving both taxpayers and affect the properties that serve the issued five technical advice memo- the Internal Revenue Service a clearer lowest income tenants, provide higher randa, TAMs, affecting the definition statement of the standards that apply levels of service, or operate in high of eligible basis as defined in section cost areas. The reason that this is in calculating credit amounts. 42(d) of the Internal Revenue Code. problematic is simple. Reducing the Our economy is not doing as well as These TAMs had the effect of reducing amount of credits does not reduce the we would like, and there is a signifi- the amount of tax credits available development costs. It merely removes cant likelihood that we are going to with respect to projects financed with a source of financing, forcing either need even more affordable housing in low-income housing tax credits. The higher rents or lower quality construc- the not too distant future. We should bill we introduce today recognizes that tion. be proud that we increased the amount certain expenses are legitimate devel- Apparently, the Treasury Depart- of low-income housing tax credits that opment costs that are properly includ- ment and Internal Revenue Service will be available to help finance this ible in the basis eligible for the tax agree that this is an issue worthy of re- housing. What we need to do now is to credits. Among these development view, as both agencies have included it make sure that these credits are used costs are: state and local impact fees, in their business plan. As recently as as efficiently as possible to provide site preparation costs, reasonable de- this month, the IRS issued new guid- housing for those who need it the most. velopment fees, professional fees, and ance on one of the items addressed by The legislation we are introducing construction financing costs, excluding the TAMs, but there does not appear to today will help achieve that goal. land acquisition costs.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1785 The TAMs drew unworkable distinc- Contrary to what some think, Gen- By Mr. GREGG: tions among various costs developers eral Aviation is much more than week- S. 2008. A bill to prohibit certain incur when they build low-income end recreational pilots. It is made of a abortion-related discrimination in gov- housing. For example, under the law as hundreds of small business people who ernmental activities; to the Committee interpreted by the IRS, a low-income make their living either servicing gen- on Health, Education, Labor, and Pen- housing developer would have to distin- eral aviation aircraft, instructing stu- sions. guish between those trees and shrubs dent pilots, using general aviation air- Mr. GREGG. Madam President, I ask planted near a housing unit and those craft to transport people, products and unanimous consent that the text of the planted elsewhere on the property. The materials or perform various services bill be printed in the RECORD. costs of trees and shrub near the hous- such as report on traffic conditions in There being no objection, the bill was ing unit could be included in basis; the congested metropolitan areas, check ordered to be printed in the RECORD, as costs of other landscaping could not. the condition of energy pipelines, crop follows: Rules like this are not only illogical; dusting, banner towing and many other S. 2008 they also impose unnecessary burdens uses. The fact is that general aviation Be it enacted by the Senate and House of Rep- both on developers of affordable hous- performs a very important function in resentatives of the United States of America in ing projects, but also on the IRS itself, our economy beyond recreational fly- Congress assembled, whose employees must draw these ing. SECTION 1. ABORTION NON-DISCRIMINATION. highly technical distinctions when Working closely with General Avia- Section 245 of the Public Health Service they audit the project. Our bill in- tion groups such as the Aircraft Own- Act (42 U.S.C. 238n) is amended— cludes fair and rational rules, intro- (1) in the section heading, by striking ‘‘RE- ers and Pilots Association, AOPA, GARDING TRAINING AND LICENSING OF PHYSI- ducing the concept of ‘‘development which has worked hard to explain the CIANS’’ and inserting ‘‘REGARDING TRAINING, cost basis’’ in lieu of ‘‘adjusted basis’’ scope of general aviation to members LICENSING, AND PRACTICE OF PHYSICIANS AND to determine which costs may qualify of Congress and how critical it is to the OTHER HEALTH CARE ENTITIES’’; for tax credits. It assures that reason- nation, I think we have a very balanced (2) in subsection (a)(1), by striking ‘‘to per- able and legitimate expenses which in- package. form such abortions’’ and inserting ‘‘to per- curred only for the purpose of building The General Aviation Industry Rep- form, provide coverage of, or pay for induced low-income housing will be eligible for arations Act of 2002 would compensate abortions’’; tax credit. General Aviation and their employees (3) in subsection (c)(2)— (A) by inserting ‘‘or other health profes- for economic injuries caused by Sep- sional,’’ after ‘‘an individual physician’’; By Mr. INHOFE: tember 11. As defined by the bill ‘‘gen- S. 2007. A bill to provide economic re- (B) by striking ‘‘and a participant’’ and in- eral aviation’’ includes ancillary busi- lief to general aviation entities that serting ‘‘a participant’’; and nesses as well. Thus, parking garages, (C) by inserting before the period the fol- have suffered substantial economic in- car rental companies or other aviation lowing: ‘‘, a hospital, a provider sponsored jury as a result of the terrorist attacks related business that were not covered organization, a health maintenance organi- perpetuated against the United States zation, a health insurance plan, or any other on September 11, 2001; to the Com- by PL 107–42 would be eligible for compensation under this bill. In addition, kind of health care facility, organization or mittee on Banking, Housing, and plan’’; and Urban Affairs. the bill extends compensation to em- (4) in subsection (b)(1), by striking ‘‘stand- Mr. INHOFE. Madam President, I rise ployees who were laid off due to the ards’’ and inserting ‘‘standard’’. today to introduce the Senate com- slow down of business following Sep- panion to HR 3347, the General Avia- tember 11 in the form of reimburse- By Mr. LEAHY (for himself, Mr. tion Industry Reparations Act of 2002. ment for health care costs and it re- DASCHLE, Mr. DURBIN, and Mr. This bill directs to the President to quires businesses who accept com- HARKIN): provide compensation to General Avia- pensation to provide health care cov- S. 2010. a bill to provide for criminal tion for losses incurred as a result of erage for existing employees. prosecution of persons who alter or de- the terrorist attacks on September 11, The bill provides three forms of com- stroy evidence in certain Federal In- 2001. pensation. Loan Guarantees of $3 bil- vestigations or defraud investors of Many have the misperception that lion from the amount made available publicly traded securities, to disallow the entire aviation industry was eligi- for the commercial airlines. Grants to- debts incurred in violation of securities ble for compensation under the Air taling $2.5 billion and like the commer- fraud laws from being discharged in Transportation Safety and Systems cial aviation industry the opportunity bankruptcy, to protect whistleblowers Stabilization Act, PL 107–42. However, to purchase War Risk Insurance with against retaliation by their employers, that act dealt only with scheduled air- the assistance of the Department of and for other purposes; to the Com- line service. As a consequence General Transportation. mittee on the Judiciary. Aviation, a very important segment of Finally, spending in the bill would be Mr. LEAHY. Mr. President, I am the aviation industry, has yet to be designated as emergency spending for pleased to introduce the ‘‘Corporate made whole for actions taken by the scoring purposes. Normally I would op- and Criminal Fraud Accountability Act federal government following the ter- pose such a designation but I believe in of 2002.’’ I want to thank the majority rorist attacks of September 11th. this instance we have successfully met leader, and Senators DURBIN and HAR- The national airspace system re- the criteria for an emergency. These KIN for joining me as original cospon- opened to commercial aviation on Sep- benefits are not open ended, compensa- sors in this effort to prevent corporate tember 13, 2001. General Aviation was tion is only available for losses in- and criminal fraud, protect share- allowed limited Instrument Flight curred between September 11 and De- holders and employees, and hold Rules, IFR, flights, operating under cember 31, 2001. Not all losses are eligi- wrongdoers accountable for their ac- guidance and direction from air traffic ble under the bill, only those that can tions. controllers, with restrictions on Sep- be shown to be a direct result of the This bill is a crucial part of ensuring tember 14th. The more common, Visual government actions following Sep- that the corporate fraud and greed that Flight Rules, VFR, flights (which can- tember 11. Businesses who choose to have been on display in the Enron de- not be done in inclement weather since take advantage of the loan guarantees bacle can be better detected, prevented pilots are not under the guidance of air must demonstrate an ability to pay and prosecuted. We cannot legislate traffic controllers) were grounded until back the loans and the government has against greed, but we can do our best September 19 and then only limited the right to benefit from profits made to make sure that greed does not suc- flights could operate outside of ‘‘en- as a result of a government backed ceed. hanced’’ Class B airspace, the airspace loan. The fraud at Enron was not the work surrounding the nation’s 30 busiest air- In short, I believe this is a respon- of novices. It was the work of highly ports. In fact, enhanced Class B air- sible bill and I hope that we will be educated professionals, spinning an in- space did not return to the pre-Sep- able to fully debate the merits of the tricate spider’s web of deceit. They cre- tember 11th design until December package on the floor and eventually ated sham partnerships with names 19th. have a vote on the bill. like Jedi, Chewco, Rawhide, Ponderosa

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1786 CONGRESSIONAL RECORD — SENATE March 12, 2002 and Sundance to cook the books and tims’ rights to recover from those who of technical distinctions imposed by trick both the public and federal regu- have cheated them. In short, this bill is some courts under current law. lators. The actions of Enron’s execu- going to both save documents from the Second, Section 2 creates a 5-year tives, accountants, and lawyers exhib- shredder and send wrongdoers to jail felony, 18 U.S.C. section 1520, to punish its a ‘‘Wild West’’ attitude which val- once they are caught. the willful failure to preserve financial ued profit over honesty. This bill is only one part of the re- audit papers of companies that issue Nor is this web of corporate deceit sponse needed to solve the problems ex- securities as defined in the Securities the end of the Enron story. When they posed by Enron’s fall. Securities law Exchange Act. The new statute, in sub- thought that investigators might be experts, consumer protection groups, section (a), would require that account- coming, what did these ‘‘professional’’ and others Members of Congress, both ants preserve audit records for 5 years men and women apparently do? First, in the Senate and the House of Rep- from the conclusion of the audit. Sub- they warmed up the shredders and resentatives, have made other pro- section (b) would make it a felony to began destroying evidence. Then, after posals and introduced legislation that knowingly and willfully violate the 5- they successfully shredded thousands deserves careful consideration. Work- year audit retention period. This sec- of documents, they began the finger ing with the majority leader, we have tion both penalizes the willful failure pointing. Now, the Enron executives developed a comprehensive plan to at- to maintain specified audit records and are blaming their accountants at Ar- tack this problem. Certainly, in light sets a bright line rule that would re- thur Andersen; the accountants are of recent events, we must carefully require accountants to put strong safe- blaming the executives right back; and examine both the decisions of the Su- guards in place to ensure that such they are both blaming their lawyers. preme Court and our current laws. De- records are, in fact, retained. Had such The truth is that just as there was spite the best of intentions, our laws clear requirements been in place at the enough greed to go around, there is may have helped create an environ- time that Arthur Andersen was consid- now enough blame to go around. But ment in which greed was inflated and ering what to do with its audit docu- the blame does not end with the people integrity devalued. This bill is an im- ments, countless documents might involved in this case. It extends to our portant starting point in that process. have been saved from the shredder. courts, our regulators, and to Congress, Let me explain its provisions. Section 3 of this bill proposes an whose actions in the past decade helped Section 2 of the bill would create two amendment to the civil Racketeer In- create the permissive atmosphere new 5 year felonies to clarify and plug fluenced and Corrupt Organizations, which allowed Enron to happen. No one holes in the existing criminal laws re- RICO, statute, enhance the abilities of in Congress intended for such out- lating to the destruction or fabrication Federal and State regulators to enforce rageous conduct to happen, but now it of evidence, including the shredding of existing law. It would give State Attor- is our job to stop it. financial and audit records. Currently, neys General and the Securities and We must restore accountability. Ac- those provisions are a patchwork which Exchange Commission, ‘‘SEC’’, explicit countability is important because have been interpreted, often very nar- authority to bring a suit under the Enron is not alone. At a Judiciary rowly, by Federal courts. For instance, civil RICO provisions. Currently, only Committee hearing which I recently certain of the current provisions in the U.S. Attorney General has such au- chaired, experts gave the public mar- Title 18, such as Section 1512(b), make thority under RICO. At a Judiciary kets grave warnings, it is likely that it a crime to persuade another person Committee hearing on Enron’s fall, there are more ‘‘Enrons’’ lurking out to destroy documents, but not a crime Washington State Attorney General there waiting to be discovered. Waiting for a person to personally destroy the Christine Gregoire strongly supported to be discovered not only by investiga- same documents. Other provisions, this change, testifying that State and tors or the media but by the more than such as Section 1503, have been nar- local law enforcers are on the front one in two Americans who depend on rowly interpreted by courts, including lines in protecting consumer’s rights. the transparency and integrity of our the Supreme Court in United States v. Providing such authority to State At- markets. Aguillar, 115 S. Ct. 593 (1995), and the torneys General and to the SEC would The majority of Americans depend on First Circuit in United States v. provide them a potent weapon in that our capital markets to invest in the fu- Frankhauser, 80 F.3d 641 (1st Cir. 1996), battle and would allow us to take ad- ture needs of themselves and their fam- to apply only to situations where the vantage of their significant expertise ilies, from their children’s college fund obstruction of justice may be closely in protecting consumers. to their retirement nest eggs. Amer- tied to a judicial proceeding that is al- Others have suggested that we also ican investors are watching what we do ready pending. Still other provisions, consider repealing the one-of-a-kind se- here and want action. We must act now such as sections 152(8), 1517 and 1518 curities fraud exception to civil RICO, to restore confidence in the integrity apply to obstruction in certain limited created in 1995 over the veto of Presi- of our markets and deter fraud artists types of cases, such as bankruptcy dent Clinton. Congressman CONYERS, who think that their crimes will go fraud, examinations of financial insti- the distinguished ranking minority unpunished. Restoring such account- tutions, and healthcare fraud. In short, member of the House Judiciary Com- ability is what this bill is all about. the current laws regarding destruction mittee, has already introduced a bill to This bill has three major components of evidence are full of ambiguities and repeal this unique exemption. As some- that will enhance accountability. limitations that should be corrected. one who voted against the 1995 Private First, this bill provides prosecutors Section 2 would create a new felony, Securities Litigation Reform Act and with new and better tools to effectively 18 U.S.C. section 1519, for use in a wide voted to sustain President Clinton’s prosecute and punish those who de- array of cases in which a person de- veto, I did not support this one-of-a- fraud our Nation’s investors, which stroys evidence with the specific intent kind exemption when it became law. means ensuring our criminal laws are to obstruct a Federal agency or a Now, given what has happened in our flexible enough to keep pace with the criminal investigation. There would be markets, I think that we all need to most sophisticated and clever con art- no technical requirement that a judi- consider whether or not the exemption ists. It also means providing criminal cial proceeding was already underway for securities fraud makes sense. No penalties which are tough enough to or that the documents were formally one who voted for the 1995 Private Se- make them think twice about defraud- under subpoena. The law would also be curities Litigation Reform Act or ing the public. used to prosecute a person who actu- voted to override President Clinton’s Second, this bill provides tools that ally destroys the records themself in veto meant for Enron to occur, but now will improve the ability of investiga- addition to one who persuades another that it has occurred, none of us can ig- tors and regulators to collect and pre- to do so. The law would apply to the in- nore it. serve evidence which proves fraud. tentional shredding of evidence in any In addition to giving the SEC the au- That means ensuring that corporate matter within Federal regulatory or thority to sue under civil RICO, we whistleblowers are protected and that civil jurisdiction, such as an SEC or have to ensure that the SEC has all the those who destroy evidence of fraud are civil fraud matter, as well as criminal powers and resources that it needs to punished. Third, the bill protects vic- jurisdiction, eliminating another series protect our Nation’s shareholders. The

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1787 SEC needs to have sufficient attorneys, limitations for such fraud cases is 3 changed to give victims the time they training, and investigative resources, years from the date of the fraud. This need to prove their fraud cases. and enough power to pursue the most can unfairly limit recovery for de- Section 6 of this bill ensures that complex of cases against the best fund- frauded investors in some cases. As At- those who destroy evidence or per- ed defendants in our legal system. In torney General Gregoire testified at petrate fraud are appropriately pun- particular, one idea that is worth seri- our recent hearing, in the Enron State ished. It would require the United ous consideration is amending the stat- pension fund litigation the current States Sentencing Commission, ‘‘Com- utes related to the Federal Rules of short statute of limitations has forced mission’’, to consider enhancing crimi- Criminal Procedure to allow SEC at- some States to forgo claims against nal penalties in cases involving the ac- torneys in fraud investigations to seek Enron based on securities fraud in 1997 tual destruction or fabrication of evi- search warrants from a Federal judge, and 1998. In Washington State alone, dence or in serious fraud cases where a the same way that Department of Jus- the short statute of limitations may large number of victims are injured or tice attorneys currently may, when cost hard working State employees, when the victims face financial ruin. they can demonstrate probable cause firefighters and police officers nearly Currently, the United States Sen- to believe that a crime has been com- $50 million, lost Enron investments tencing Guidelines recognize that a mitted. Taking such a step might allow which they can never recover under wide variety of conduct falls under the the SEC to act more quickly and to current law. offense of ‘‘obstruction of justice.’’ For prevent the destruction of documents Especially in complex securities obstruction cases involving the murder and evidence in the future, as they fraud cases, the current short statute of a witness or another crime, the were not able to do in the Enron case. of limitations may insulate the worst guidelines allow, by cross reference, The SEC has to have the tools it needs offenders from accountability. As Jus- significant enhancements based on the to protect what has truly become a na- tices O’Connor and Kennedy said in underlying crimes, such as murder or tion of shareholders. their dissent in Lampf, Pleva, Lipkind, attempted murder. For cases where ob- Section 4 of this bill would amend Prupis, & Petigrow v. Gilbertson, 111 S. struction is the only offense, however, the Bankruptcy Code to make judg- Ct. 2773 (1991), the 5–4 decision uphold- they provide little guidance on dif- ments and settlements based upon se- ing this short statute of limitations in ferentiating between different types of curities law violations non-discharge- most securities fraud cases, the current obstruction. This provision requests able, protecting victims’ ability to re- ‘‘one and three’’ limitations period that the Sentencing Commission con- cover their losses. Current bankruptcy makes securities fraud actions ‘‘all but sider a specific enhancement in cases law may permit such wrongdoers to a dead letter for injured investors who where evidence and records are actu- discharge their obligations under court by no conceivable standard of fairness ally destroyed or fabricated in order to judgments or settlements based on se- or practicality can be expected to file thwart investigators, a serious form of curities fraud and other securities vio- suit within 3 years after the violation obstruction. lations. This loophole in the law should occurred.’’ The Consumers Union also This provision, in subsections 3 and 4, be closed to help defrauded investors strongly supports the bill, and views also requires the Commission to con- recoup their losses and to hold ac- this section in particular as a needed sider enhancing the penalties in fraud countable those who perpetrate securi- measure to protect investors. cases which are particularly extensive ties fraud after a government unit or The experts agree with that view. In or serious. The current fraud guidelines private suit results in a judgment or fact, the last two SEC Chairmen sup- require the sentencing judge to take settlement against the wrongdoer. ported extending the statute of limita- the number of victims into account, State securities regulators have indi- tions in securities fraud cases. Then but only to a very limited degree in cated their strong support for this Chairman Arthur Levitt testified be- small and medium-sized cases. Specifi- change in the bankruptcy law, and I fore a Senate Subcommittee in 1995 cally, once there are more than 50 vic- have received letters supporting the that ‘‘extending the statute of limita- tims, the guidelines do not require any passage of this bill from the North tions is warranted because many secu- further enhancement of the sentence, American Securities Administrators rities frauds are inherently complex, so that a case with 51 victims may be Association, whose membership in- and the law should not reward the per- treated the same as a case with 5,000 cludes the securities administrators in petrator of a fraud, who successfully victims. As the Enron matter dem- all 50 States and Vermont’s chief bank- conceals its existence for more than 3 onstrates, serious frauds, especially in ing and securities regulator. Under cur- years.’’ Before Chairman Levitt, in the cases where publicly traded securities rent laws, State regulators are often last Bush administration, then SEC are involved, can effect thousands of forced to ‘‘reprove’’ their fraud cases in Chairman Richard Breeden also testi- victims. The Commission may well bankruptcy court to prevent discharge fied before Congress in favor of extend- have not foreseen such extensive cases, because remedial statutes often have ing the statute of limitations in securi- and subsection 3 requires it to recon- different technical elements than the ties fraud cases. Reacting to the Lampf sider whether they merit an additional analogous common law causes of ac- opinion, Breeden stated in 1991 that enhancement. tion. Moreover, settlements may not ‘‘[e]vents only come to light years In addition, current guidelines allow have the same collateral estoppel ef- after the original distribution of secu- only very limited consideration of the fect as judgments obtained through rities, and the Lampf cases could well extent of devastation that a fraud of- fully litigated legal proceedings. In mean that by the time investors dis- fense causes its victims. Judges may short, with their resources already cover they have a case, they are al- only consider whether a fraud endan- stretched to the breaking point, these ready barred from the courthouse.’’ gers the ‘‘solvency or financial secu- State regulators have to plow the same Both the FDIC and the State securities rity’’ of a victim to impose an upward ground twice in securities fraud cases. regulators joined the SEC in calling for departure from the recommended sen- By ensuring securities fraud judgments a legislative reversal of the Lampf de- tencing range. It is not a factor in es- and settlements in State cases are non- cisions at that time. tablishing the range itself unless a dischargeable, precious state enforce- In fraud cases the short limitations bank is the victim. Subsection 4 re- ment resources will be preserved and period under current law is an invita- quires the Commission to consider re- directed at preventing fraud in the first tion to take sophisticated steps to con- quiring judges to consider the extent of place. ceal the deceit. The experts have long the fraud in setting the actual rec- Section 5 would protect victims by agreed on that point, but unfortu- ommended sentencing range in cases extending the statute of limitations in nately they have been proven right such as the Enron matter, where many private securities fraud cases. This sec- again. As we know from recent experi- private victims have lost their life sav- tion would set the statute of limita- ence, it only takes a few seconds to ings. tions in private securities fraud cases warm up the shredder, but unfortu- Section 7 of the bill would provide to the earlier of 5 years after the date nately it will take years for victims to whistleblower protection to employees of the fraud or 3 years after the fraud put this complex case back together of publicly traded companies who re- was discovered. The current statute of again. It is time that the law be port acts of fraud to Federal officials

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1788 CONGRESSIONAL RECORD — SENATE March 12, 2002 with the authority to remedy the tion or otherwise assist criminal inves- to Chapter 63 of Title 18 which would wrongdoing or to supervisors or appro- tigators, Federal regulators, Congress, criminalize the execution or attempted priate individuals within their com- their supervisors, or other proper peo- execution of a scheme or artifice to de- pany. Although current law protects ple within a corporation, or parties in fraud persons in connection with secu- many government employees who act a judicial proceeding in detecting and rities of publicly traded companies or in the public interest by reporting stopping actions which they reasonably obtain their money or property. The wrongdoing, there is no similar protec- believe to be fraudulent. Since the only provision would provide needed en- tion for employees of publicly traded acts protected are ‘‘lawful’’ ones, the forcement flexibility in the context of companies who blow the whistle on bill would not protect illegal actions, publicly traded companies to protect fraud and protect investors. With an such as the improper public disclosure shareholders and prospective share- unprecedented portion of the American of trade secret information. In addi- holders against all the types of public investing in these companies tion, a reasonableness test is also pro- schemes and frauds which inventive and depending upon their honesty, this vided under the subsection (a)(1), which criminals may devise in the future. distinction does not serve the public is intended to impose the normal rea- This bill can only be part of the need- good. sonable person standard used and inter- ed response to the problems exposed by In addition, corporate employees who preted in a wide variety of legal con- the Enron debacle. It is clear that report fraud are subject to the patch- texts. See generally Passaic Valley changes are needed to restore account- work and vagaries of current State Sewerage Commissioners v. Depart- ability in our markets. As a lawyer and laws, even though most publicly traded ment of Labor, 992 F. 2d 474, 478. Cer- a former prosecutor I am appalled at companies do business nationwide. tainly, although not exclusively, any the role that lawyers and accountants Thus, a whistleblowing employee in type of corporate or agency action played in the Enron case. Instead of one State may be far more vulnerable taken based on the information or the acting as gatekeepers who detect and to retaliation than a fellow employee information constituting admissible deter fraud, it appears that Enron’s ac- in another State who takes the same evidence would be strong indicia that countants and lawyers brought all actions. Unfortunately, one thing that it could support of such a reasonable their skills and knowledge to bear in often transcends State lines, as we all belief. Under this bill’s new protec- assisting the fraud to succeed and then know from the State tobacco litiga- tions, if the employer does take illegal in covering it up. We need to reconsider tion, are certain companies with a cor- action in retaliation for such lawful the incentive system that has been set porate culture that punishes whistle- and protected conduct, subsection b al- up that encourages accountants and blowers for being ‘‘disloyal’’ and ‘‘liti- lows the employee to elect to file an lawyers who come across fraud in their gation risks.’’ administrative complaint at the De- work to remain silent. Most corporate employers, with help partment of Labor, as is the case for from their lawyers, know exactly what employees who provide assistance in Others have suggested that we re- they can do to a whistleblowing em- airplane safety, or to bring a case in store aider and abettor liability to the ployee under the law. Unfortunately, Federal court, with a jury trial avail- law as it existed for almost five dec- Enron has supplied us with another able for an action at law. See United ades before the Supreme Court, in an- grievous example of corporate conduct States Constitution, Amendment VII; other 5–4 decision, took away the abil- as shown by a recently released email Title 42 United States Code, Section ity of private parties to sue aiders and from one of Enron’s lawyers. The email 1983. abettors for securities fraud. I hope responds to a request for legal advice Subsection (c) of this section would that Senators on the Banking Com- after an Enron employee tried to re- require both reinstatement of the whis- mittee will seriously consider this port accounting irregularities at the tleblower, double backpay, and com- change, which restores the ability to highest levels of the company in late pensatory damages to make a victim hold liable accountants and lawyers August, 2001: whole. In severe cases, where the finder who knowingly or recklessly provide You asked that I include in this commu- of fact determines that underlying substantial assistance in perpetrating nication a summary of the possible risks as- fraud posed a substantial risk to the a fraud. Others have also proposed to sociated with discharging (or constructively restore joint and several liability in se- discharging) employees who report allega- shareholders’ or the general public’s tions of improper accounting practices: 1. health, safety or welfare, punitive dam- curities fraud cases so that fraud vic- Texas law does not currently protect cor- ages would be allowed in the discretion tims are not left empty handed watch- porate whistleblowers. The supreme court of the finder of fact based on a number ing the accountants, lawyers, and ex- has twice declined to create a cause of action of enumerated factors. The bill does ecutives point fingers at each other, for whistleblowers who are discharged . . . not supplant or replace State law, but until they can blame everything on the This legal advice lays bare the fact sets a national floor for employee pro- one company that files for bankruptcy that employees who do the ‘‘right tections in the context of publicly protection, like Enron, another change thing’’ are vulnerable to retaliation. traded companies. worth careful consideration. In short, After this high level employee at Section 8 of the bill would create a we have to ask ourselves whether, as a Enron reported improper accounting new ten year felony under Title 18 for nation, we have unintentionally practices, Enron is not thinking about defrauding shareholders of publicly stacked the deck against fraud victims. firing Arthur Andersen, they are con- traded companies. Currently, unlike I think that we have, and we need to sidering discharging the whistle blow- bank fraud or health care fraud, there have the courage to admit it and reer. No wonder that so many employees is no generally accessible statute deal- shuffle the cards to restore basic fair- are scared to come forward. Our laws ing with the specific problem of securi- ness. need to encourage and protect those ties fraud. In these cases, Federal in- For all of these reasons, I am pleased who report fraudulent activity that vestigators and prosecutors are forced to introduce the ‘‘Corporate and Crimi- damages investors in publicly traded either to resort to a patchwork of tech- nal Fraud Accountability Act of 2002.’’ companies. That is why this bill is sup- nical Title 15 offenses, which may I look forward to working with mem- ported by groups such as the National criminalize particular violations of se- bers on both sides of the aisle to enact Whistleblower Center, the Government curities law, or to treat the cases as ge- its provisions into law. Accountability Project, and Taxpayers neric mail or wire fraud cases and to Against Fraud, who have written a let- meet the technical elements of those I ask unanimous consent for this bill ter calling this bill ‘‘the single most ef- statutes, with their 5 year maximum to be printed in the RECORD along with fective measure possible to prevent penalties. the sectional analysis and a copy of the recurrences of the Enron debacle and This bill, then, would create a new entire e-mail document to which I re- similar threats to the nation’s finan- ten year felony for securities fraud, a ferred as well as the letters of support cial markets.’’ more general and less technical provi- which I have referenced. This bill would create a new provision comparable to the bank fraud and There being no objection, the mate- sion protecting employees when they health care fraud statutes in Title 18. rials were ordered to be printed in the take lawful acts to disclose informa- Specifically, it would add a provision RECORD, as follows:

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1789 S. 2010 of 1934 (15 U.S.C. 78c(a)(47)), any State securi- section 6 of the Securities Act of 1933 (15 Be it enacted by the Senate and House of Rep- ties laws, or any regulations or orders issued U.S.C. 77f) or section 12 or 15(d) of the Secu- resentatives of the United States of America in under such Federal or State securities laws; rities Exchange Act of 1934 (15 U.S.C. 78l, Congress assembled, or 78o(d)), or any officer, employee, contractor, subcontractor, or agent of such company, SECTION 1. SHORT TITLE. ‘‘(ii) common law fraud, deceit, or manipu- may discharge, demote, suspend, threaten, This Act may be cited as the ‘‘Corporate lation in connection with the purchase or harass, or in any other manner discriminate and Criminal Fraud Accountability Act of sale of any security; and against an employee in the terms and condi- 2002’’. ‘‘(B) results, in relation to any claim described in subparagraph (A), from— tions of employment because of any lawful SEC. 2. CRIMINAL PENALTIES FOR ALTERING act done by the employee— DOCUMENTS. ‘‘(i) any judgment, order, consent order, or decree entered in any Federal or State judi- ‘‘(1) to provide information, cause informa- (a) IN GENERAL.—Chapter 73 of title 18, cial or administrative proceeding; tion to be provided, or otherwise assist in an United States Code, is amended by adding at investigation regarding any conduct which the end the following: ‘‘(ii) any settlement agreement entered into by the debtor; or the employee reasonably believes constitutes ‘‘§ 1519. Destruction, alteration, or falsifica- ‘‘(iii) any court or administrative order for a violation of section 1341, 1343, 1344, or 1348, tion of records in Federal investigations any damages, fine, penalty, citation, any rule or regulation of the Securities and and bankruptcy restitutionary payment, disgorgement pay- Exchange Commission, or any provision of ‘‘Whoever knowingly alters, destroys, mu- ment, attorney fee, cost, or other payment Federal law relating to fraud against share- tilates, conceals, covers up, falsifies, or owed by the debtor.’’. holders, when the information or assistance is provided to or the investigation is con- makes a false entry in any record, document, SEC. 5. STATUTE OF LIMITATIONS FOR SECURI- or tangible object with the intent to impede, TIES FRAUD. ducted by— ‘‘(A) a Federal regulatory or law enforce- obstruct, or influence the investigation or (a) IN GENERAL.—Section 1658 of title 28, ment agency; proper administration of any matter within United States Code, is amended— ‘‘(B) any Member of Congress or any com- the jurisdiction of any department or agency (1) by inserting ‘‘(a)’’ before ‘‘Except’’; and mittee of Congress; or of the United States or any case filed under (2) by adding at the end the following: ‘‘(C) a person with supervisory authority title 11, or in relation to or contemplation of ‘‘(b) Notwithstanding subsection (a), a pri- over the employee (or such other person any such matter or case, shall be fined under vate right of action that involves a claim of working for the employer who has the au- this title, imprisoned not more than 5 years, fraud, deceit, manipulation, or deliberate or thority to investigate, discover, or terminate or both. reckless disregard of a regulatory require- misconduct); or ment concerning the securities laws, as de- ‘‘§ 1520. Destruction of corporate audit ‘‘(2) to file, cause to be filed, testify, par- fined in section 3(a)(47) of the Securities Ex- records ticipate in, or otherwise assist in a pro- change Act of 1934 (15 U.S.C. 78c(a)(47)), may ‘‘(a) Any accountant who conducts an ceeding filed or about to be filed (with any audit of an issuer of securities to which sec- be brought not later than the earlier of— knowledge of the employer) relating to an tion 10A(a) of the Securities Exchange Act of ‘‘(1) 5 years after the date on which the al- alleged violation of section 1341, 1343, 1344, or 1934 (15 U.S.C. 78j–1(a)) applies, shall main- leged violation occurred; or 1348, any rule or regulation of the Securities tain all documents (including electronic doc- ‘‘(2) 3 years after the date on which the al- and Exchange Commission, or any provision uments) sent, received, or created in connec- leged violation was discovered.’’. of Federal law relating to fraud against tion with any audit, review, or other engage- (b) EFFECTIVE DATE.—The limitations pe- shareholders. ment for such issuer for a period of 5 years riod provided by section 1658(b) of title 28, ‘‘(b) ELECTION OF ACTION.— from the end of the fiscal period in which the United States Code, as added by this section, ‘‘(1) IN GENERAL.—A person who alleges dis- audit, review, or other engagement was con- shall apply to all proceedings addressed by charge or other discrimination by any person cluded. this section that are commenced on or after in violation of subsection (a) may seek relief ‘‘(b) Whoever knowingly and willfully vio- the date of enactment of this Act. under subsection (c), by— lates subsection (a) shall be fined under this SEC. 6. REVIEW OF FEDERAL SENTENCING ‘‘(A) filing a complaint with the Secretary title, imprisoned not more than 5 years, or GUIDELINES FOR OBSTRUCTION OF of Labor; or both. JUSTICE AND EXTENSIVE CRIMINAL ‘‘(B) bringing an action at law or equity in FRAUD. ‘‘(c) Nothing in this section shall be the appropriate district court of the United Pursuant to section 994 of title 28, United deemed to diminish or relieve any person of States. States Code, and in accordance with this sec- any other duty or obligation, imposed by ‘‘(2) PROCEDURE.— tion, the United States Sentencing Commis- Federal or State law or regulation, to main- ‘‘(A) IN GENERAL.—An action under para- sion shall review and amend, as appropriate, tain, or refrain from destroying, any docu- graph (1)(A) shall be governed under the the Federal Sentencing Guidelines and re- ment.’’. rules and procedures set forth in section lated policy statements to ensure that— (b) CLERICAL AMENDMENT.—The table of 42121(b) of title 49, United States Code. (1) the guideline offense levels and en- sections at the beginning of chapter 73 of ‘‘(B) EXCEPTION.—Notification made under hancements for an obstruction of justice of- title 18, United States Code, is amended by section 42121(b)(1) of title 49, United States fense are adequate in cases where documents adding at the end the following new items: Code, shall be made to the person named in or other physical evidence are actually de- ‘‘1519. Destruction, alteration, or falsifica- the complaint and to the employer. stroyed or fabricated; tion of records in Federal inves- ‘‘(C) BURDENS OF PROOF.—An action (2) the guideline offense levels and en- tigations and bankruptcy. brought under paragraph (1)(B) shall be gov- hancements for violations of section 1519 or ‘‘1520. Destruction of corporate audit erned by the legal burdens of proof set forth 1520 of title 18, United States Code, as added records.’’. in section 42121(b) of title 49, United States by this Act, are sufficient to deter and pun- Code. SEC. 3. ENHANCED ENFORCEMENT OF LAWS AF- ish that activity; FECTING RACKETEER-INFLUENCED ‘‘(D) STATUTE OF LIMITATIONS.—An action (3) the guideline offense levels and en- AND CORRUPT ORGANIZATIONS. under paragraph (1) shall be commenced not hancements under United States Sentencing Section 1964 of title 18, United States Code, later than 180 days after the date on which Guideline 2B1.1 (as in effect on the date of is amended— the violation occurs. enactment of this Act) are sufficient for a (1) in subsection (b), by inserting after ‘‘(c) REMEDIES.— fraud offense when the number of victims ad- ‘‘The Attorney General’’ the following: ‘‘, ‘‘(1) IN GENERAL.—An employee prevailing versely involved is significantly greater than the Attorney General of any State, or the in any action under subsection (b)(1) (A) or 50; and Securities and Exchange Commission’’; and (B) shall be entitled to all relief necessary to (4) a specific offense characteristic enhanc- (2) in subsection (d), by inserting before make the employee whole. ing sentencing is provided under United the period the following: ‘‘or any State’’. ‘‘(2) COMPENSATORY DAMAGES.—Relief for States Sentencing Guideline 2B1.1 (as in ef- any action under paragraph (1) shall in- SEC. 4. DEBTS NONDISCHARGEABLE IF IN- fect on the date of enactment of this Act) for CURRED IN VIOLATION OF SECURI- clude— TIES FRAUD LAWS. a fraud offense that endangers the solvency ‘‘(A) reinstatement with the same senior- Section 523(a) of title 11, United States or financial security of 1 or more victims. ity status that the employee would have had, Code, is amended— SEC. 7. PROTECTION FOR EMPLOYEES OF PUB- but for the discrimination; (1) in paragraph (17), by striking ‘‘or’’ after LICLY TRADED COMPANIES WHO ‘‘(B) 2 times the amount of back pay, with PROVIDE EVIDENCE OF FRAUD. the semicolon; interest; and (a) IN GENERAL.—Chapter 73 of title 18, (2) in paragraph (18), by striking the period ‘‘(C) compensation for any special damages United States Code, is amended by inserting at the end and inserting ‘‘; or’’; and sustained as a result of the discrimination, after section 1514 the following: (3) by adding at the end, the following: including litigation costs, expert witness ‘‘(19) that— ‘‘§ 1514A. Civil action to protect against retal- fees, and reasonable attorney fees. ‘‘(A) arises under a claim relating to— iation in fraud cases ‘‘(3) PUNITIVE DAMAGES.— ‘‘(i) the violation of any of the Federal se- ‘‘(a) WHISTLEBLOWER PROTECTION FOR EM- ‘‘(A) IN GENERAL.—In a case in which the curities laws (as that term is defined in sec- PLOYEES OF PUBLICLY TRADED COMPANIES.— finder of fact determines that the protected tion 3(a)(47) of the Securities Exchange Act No company with securities registered under conduct of the employee under subsection (a)

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1790 CONGRESSIONAL RECORD — SENATE March 12, 2002 involved a substantial risk to the health, often limited ways in federal court. For in- injured or when the injury to the victims is safety, or welfare of shareholders of the em- stance, certain of the current provisions particularly grave, i.e. they face financial ployer or the public, the finder of fact may make it a crime to persuade another person ruin. award punitive damages to the employee. to destroy documents, but not a crime to ac- This provision first requires the Commis- ‘‘(B) FACTORS.—In determining the tually destroy the same documents yourself. sion to consider sentencing enhancements in amount, if any, to be awarded under this Other provisions have been narrowly inter- paragraph, the finder of fact shall take into preted by courts, including the Supreme obstruction of justice cases where physical account— Court in United States v. Aguillar, 115 S. Ct. evidence was actually destroyed. The provi- ‘‘(i) the significance of the information or 593 (1995), to apply only to situations where sion, in subsections 3 and 4, also requires the assistance provided by the employee under the obstruction of justice can be closely tied Commission to consider sentencing enhance- subsection (a) and the role of the employee to a pending judicial proceeding. ments for fraud cases which are particularly in advancing any investigation, proceeding, First, this section would create a new 5 extensive or serious. Specifically, once there congressional inquiry or action, or internal year felony which could be effectively used are more than 50 victims, the current guide- remedial process, or in protecting the health, in a wide array of cases where a person de- lines do not require any further enhance- safety, or welfare of shareholders of the em- stroys or creates evidence with the specific ment of the sentence, so that a case with 51 ployer or of the public; intent to obstruct a federal agency or a victims may be treated the same as a case ‘‘(ii) the nature and extent of both the ac- criminal investigation. Second, the section with 5,000 victims. In addition, current tual and potential discrimination to which creates another 5 year felony which applies guidelines allow only very limited consider- the employee was subjected as a result of the specifically to the willful failure to preserve ation of the extent of financial devastation protected conduct of the employee under audit papers of companies that issue securi- that a fraud offense causes to private vic- subsection (a); and ties. tims. This section corrects both these prob- ‘‘(iii) the nature and extent of the risk to Section 3. Amendment to Improve Enforcement lems. the health, safety, or welfare of shareholders of Civil RICO or the public under subparagraph (A). This section proposes an amendment to the Section 7. Whistleblower Protection for Employ- ‘‘(d) RIGHTS RETAINED BY EMPLOYEE.— civil RICO provision found at 18 U.S.C. Sec- ees of Publicly Traded Companies ‘‘(1) OTHER REMEDIES UNAFFECTED.—Noth- tion 1964 which would enhance the abilities ing in this section shall be deemed to dimin- This section would provide whistleblower of federal and state regulators to enforce ex- protection to employees of publicly traded ish the rights, privilege, or remedies of any isting law by giving State Attorneys General companies, similar to those currently avail- employee under any Federal or State law, or and the Securities and Exchange Commis- able to many government employees. It spe- under any collective bargaining agreement. sion, SEC, explicit authority to bring a suit ‘‘(2) VOLUNTARY ADJUDICATION.—No em- under the civil RICO provisions. Currently, cifically protects them when they take law- ployee may be compelled to adjudicate his or only the Attorney General has such author- ful acts to disclose information or otherwise her rights under this section pursuant to an ity under RICO. assist criminal investigators, federal regu- arbitration agreement.’’. lators, Congress, supervisors (or other proper Section 4. Bankruptcy (b) CLERICAL AMENDMENT.—The table of people within a corporation), or parties in a This provision would amend the Federal sections at the beginning of chapter 73 of judicial proceeding in detecting and stopping bankruptcy code to make judgments and set- title 18, United States Code, is amended by fraud. Since the bill’s provisions only apply tlements arising from state and federal secu- inserting after the item relating to section to ‘‘lawful’’ actions by an employee, it does 1514 the following new item: rities law violations brought by state or federal regulators and private individuals non- not protect employees from improper and ‘‘1514A. Civil action to protect against retal- dischargeable. Current bankruptcy law may unlawful disclosure of trade secrets. In addi- iation in fraud cases.’’. permit wrongdoers to discharge their obligation, a reasonableness test is also set forth SEC. 8. CRIMINAL PENALTIES FOR DEFRAUDING tions under court judgments or settlements under the information providing subsection SHAREHOLDERS OF PUBLICLY based on securities fraud and securities law of this section, which is intended to impose TRADED COMPANIES. violations. This loophole in the law should the normal reasonable person standard used (a) IN GENERAL.—Chapter 63 of title 18, be closed to help defrauded investors recoup and interpreted in a wide variety of legal United States Code, is amended by adding at their losses and to hold accountable those contexts. See generally Passaic Valley Sewer- the end the following: who perpetrate securities fraud. age Commissioners v. Department of Labor, 992 ‘‘§ 1348. Securities fraud Section 5. Statute of Limitations F. 2d 474, 478. Certainly, although not exclu- ‘‘Whoever knowingly executes, or attempts This section would set the statute of limi- sively, any type of corporate or agency ac- to execute, a scheme or artifice— tations in private securities fraud cases to tion taken based on the information, or the ‘‘(1) to defraud any person in connection the earlier of 5 years after the date of the information constituting or leading to ad- with any security registered under section 12 fraud or three years after the fraud was dis- missible evidence would be strong indicia or 15(d) of the Securities Exchange Act of covered. The current statute of limitations that it could support of such a reasonable be- 1934 (15 U.S.C. 78l, 78o(d)) or section 6 of the for private securities fraud cases is the ear- lief. If the employer does take illegal action Securities Act of 1933 (15 U.S.C. 77f); or lier of three years from the date of the fraud in retaliation for lawful and protected con- ‘‘(2) to obtain, by means of false or fraudu- or one year from the date of discovery. In duct, subsection (b) allows the employee to lent pretenses, representations, or promises, the Enron state pension fund litigation, the elect to file an administrative complaint or any money or property in connection with current short statute of limitations has to bring a case in federal court, with a jury the purchase or sale of any security reg- forced some states to forgo claims against trial available in cases where the case is an istered under section 12 or 15(d) of the Secu- Enron based on securities fraud in 1997 and action at law. See United States Constitu- rities Exchange Act of 1934 (15 U.S.C. 78l, 1998. Victims of securities fraud should have tion, Amendment VII; Title 42 United States 78o(d)) or section 6 of the Securities Act of a reasonable time to discover the facts un- Code, Section 1983. Subsection (c) would re- 1933 (15 U.S.C. 77f), derlying the fraud. quire both reinstatement of the whistle- shall be fined under this title, or imprisoned The Supreme Court, in Lampf v. Gilbertson, blower, double backpay, compensatory dam- 501 U.S. 350 (1991), endorsed the current short not more than 10 years, or both.’’. ages to make a victim whole, and would (b) CLERICAL AMENDMENT.—The table of statute of limitations for securities fraud in allow punitive damages in extreme cases sections at the beginning of chapter 63 of a 5–4 decision. Justices O’Connor and Ken- where the public’s health, safety or welfare title 18, United States Code, is amended by nedy wrote in their dissent in the Lampf was at risk. adding at the end the following new item: decison: ‘‘By adopting a 3-year period of ‘‘1348. Securities fraud.’’. repose, the Court makes a § 10(b) action all Section 8. Criminal Penalties for Securities but a dead letter for injured investors who Fraud SECTIONAL ANALYSIS: CORPORATE AND by no conceivable standard of fairness or This provision would create a new 10 year CRIMINAL FRAUD ACCOUNTABILITY ACT OF 2002 practicality can be expected to file suit within three years after the violation occurred. felony for defrauding shareholders of pub- Section 1. Title. In so doing, the Court also turns its back on licly traded companies. The provision would ‘‘Corporate and Criminal Fraud Account- the almost uniform rule rejecting short peri- supplement the patchwork of existing tech- ability Act.’’ ods of repose for fraud-based actions.’’ nical securities law violations with a more Section 2. Criminal Penalties for Altering, De- Section 6. Review and Enhancement of Criminal general and less technical provision, com- stroying, or Failing to Maintain Documents Sentences in Cases of Fraud and Evidence parable to the bank fraud and health care This section provides two new criminal Destruction fraud statutes. The provision would be more statutes which would clarify and plug holes This section would require the United accessible to investigators and prosecutors in the current criminal laws relating to the States Sentencing Commission, ‘‘Commis- and would provide needed enforcement flexi- destruction or fabrication of evidence, in- sion’’, to consider enhancing criminal pen- bility and, in the context of publicly traded cluding the shredding of financial and audit alties in cases involving the actual destruc- companies, protection against all the types records. Currently, those provisions are a tion or fabrication of evidence or in fraud schemes and frauds which inventive crimi- patchwork which have been interpreted in cases in which a large number of victims are nals may devise in the future.

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VERMONT DEPARTMENT OF BANKING, Criminal Fraud Accountability Act of 2002. our unqualified pledge of helping to finish INSURANCE, SECURITIES AND This law would protect employees who dis- the public service you started by introducing HEALTH CARE ADMINISTRATION, close Enron-related fraud to the appropriate this legislation. Montpelier, VT, March 8, 2002. authorities. It is modeled on the airline safe- Sincerely, Senator PATRICK LEAHY, ty whistleblower law, which overwhelmingly JIM MOORMAN, Russell Senate Office Building, passed Congress with strong bi-partisan sup- Executive Director, U.S. Senate, Washington, DC. port. The next time a company like Enron TAF. DEAR SENATOR LEAHY: Your staff recently seeks advice from counsel as to whether they TOM DEVINE, forwarded a copy of a bill you intend to in- can fire an employee, like Sharon Watkins, Legal Director, GAP. troduce entitled, ‘‘Corporate and Criminal who merely discloses potential fraud on Fraud Accountability Act of 2002’’. I read shareholders, the answer must be a resound- NORTH AMERICAN SECURITIES AD- your proposed legislation with special inter- ing ‘‘no.’’ That can only happen if the Cor- MINISTRATORS ASSOCIATION, INC., est, as I am a trustee of the Vermont State porate and Criminal Fraud Accountability Washington, DC, March 5, 2002. Teachers’ Retirement Board. That system Act is enacted into law. Hon. PATRICK J. LEAHY, recently experienced some losses due to its Respectfully submitted, Chairman, Senate Judiciary Committee, investment in Enron, as did the other state STEPHEN M. KOHN, Washington, DC. retirement systems. Chairman of the DEAR MR. CHAIRMAN: The North American I believe that your bill will have a signifi- Board of Directors. Securities Administrators Association, Inc., cant and positive effect on how we inves- KRIS KOLESNIK, (NASAA), organized in 1919, is the oldest tigate and punish those involved in cases of Executive Director. international organization devoted to inves- corporate and criminal fraud. The provision tor protection. Its membership consists of of your bill making judgments arising from GOVERNMENT ACCOUNTABILITY the securities administrators in the 50 state and federal securities law violations PROJECT AND TAXPAYERS AGAINST states, the District of Columbia, Canada, non-dischargeable under the federal bank- FRAUD, Mexico and Puerto Rico. NASAA is the voice ruptcy code is particularly welcome. This Washington, DC, March 11, 2002. of securities agencies responsible for grass- improvement in the law would materially Hon. PATRICK LEAHY, roots investor protection and efficient cap- improve the ability of defrauded investors to Chair, Senate Judiciary Committee, Dirksen ital formation. recoup their losses. I also support your pro- Senate Office Building, Washington, DC. NASAA members collectively bring thou- posed expansion of the statute of limitations DEAR SENATOR LEAHY: Thank you for your sands of enforcement actions against viola- in private securities fraud cases. This longer leadership in introducing the Corporate tors of securities laws in an effort to protect statute of limitations will result in inves- Fraud and Criminal Accountability Act of investors from fraud and abuse in connection tors, including state retirement funds, enjoy- 2002. This is a landmark proposal, for which with the offer and sale of securities. ing a more level playing field when they are we offer our complete support. The bill We have reviewed a draft of the Corporate defrauded by complex schemes that they promises to make whistleblower protection and Criminal Fraud and Accountability Act could not reasonably be expected to discover the rule rather than the exception for those of 2002, and we support it. Our focus is on the within the current three year period. challenging betrayals of corporate fiduciry section that would prevent the discharge of I also support the provisions in the bill to duty enforced by the Securities and Ex- certain debts in bankruptcy proceedings. At clarify the criminal laws concerning the de- change Commission. It would be the single the present time, the bankruptcy code en- struction or fabrication of evidence and the most effective measure possible to prevent ables defendants who are guilty of fraud and enhancement of criminal sentences in cases recurrences of the Enron debacle and similar other securities violations to thwart enforce- of fraud and destruction of evidence. As the threats to the nation’s financial markets, ment of the judgments and other awards agency charged with examining financial in- shareholders and pension holders. It also that are issued in these cases. stitutions, the integrity of records is essen- would be a breakthrough in implementing We support Section 4, as drafted, because it tial to our ability to do our jobs. Clear fed- recommendations pending since 1985 by the strengthens the ability of regulators and in- eral laws and increased criminal penalties Administrative Conference of the United dividual investors to prevent the discharge will provide powerful deterrents to evidence States for a consistent, coherent system of of certain debts and hold defendants finan- destruction and securities fraud. I also sup- corporate whistleblower protection. cially responsible for violations of securities port the expansion of civil RICO to allow The Government Accountability Project laws. This issue is of great interest to state state attorney generals and the SEC to bring (GAP) is a nonprofit, nonpartisan public in- securities regulators, and we commend you civil RICO suits. terest law firm dedicated since 1976 to help- for addressing it in the proposed legislation. Please let me know if I can be of any fur- ing whistleblowers, those employees who ex- NASAA and its members are prepared to ther assistance on this legislation. ercise freedom of speech to bear witness work with you as the legislative process con- Sincerely, against betrayals of public trust that they tinues. We support your effort to enhance ELIZABETH COSTLE, discover on the job. GAP has led the cam- the ability of state and federal regulators to Commissioner. paign for passage of nearly all federal whis- help defrauded investors recoup their losses tleblower laws over the last two decades, as and to hold accountable those who perpet- NATIONAL WHISTLEBLOWER CENTER, well as a model law approved by the Organi- uate securities fraud. Washington, DC, March 11, 2002. zation of American States to implement its Sincerely, Senator PATRICK LEAHY, Inter-American Convention Against Corrup- JOSEPH P. BORG, Chairman, Senate Judiciary Committee, Dirksen tion. Two decades of lessons learned are sum- NASAA President, Director of Senate Office Building, Washington, DC. marized in GAP’s book The Whistleblower’s Alabama Securities Commission. DEAR CHAIRMAN LEAHY: Since 1988 the Na- Survival Guide: Courage Without Mar- tional Whistleblower Center has aided or de- tyrdom. Taxpayers Against Fraud, The False From: Jordan, Carl. fended hundreds of employees who have dis- Claims Act Legal Center (TAF) is a non- Sent: Friday, August 24, 2001 7:02 PM. closed fraud and criminal activities within profit, nonpartisan public interest organiza- To: Butcher, Sharon (Enron). the public and private sectors. During this tion dedicated to combating fraud against Subject: Confidential Employee Matter. time we have become painfully aware of the the Federal Government through the pro- ATTORNEY CLIENT PRIVILEGED major loopholes which often leave coura- motion and use of the federal False Claims COMMUNICATION geous employees without any legal protec- Act and its qui tam whistleblower provisions. Sharon: Per your request, the following are tion. One of the most notorious loopholes ex- TAF supports effective anti-fraud legislation some bullet thoughts on how to manage the ists under the securities laws, in which em- at the federal and state level and, as part of situation with the employee who made the ployees who report fraud upon stockholders its educational outreach, publishes the False sensitive report. have no protection under federal law. It is Claims Act and Qui Tam Quarterly Review. 1. I agree that it is a positive that she has truly tragic that employees who are wrong- This bill is outstanding good goverenment requested reassignment to another depart- fully discharged merely for reporting viola- legislation. It uses the best combination of ment. Assuming a suitable position can be tions of law, which may threaten the integ- provisions that have proven effective in found, I recommend documenting in memo rity of pension funds or education-based sav- other contexts. It has the modern burdens of form that the transfer is being effected per ings accounts, have no federal protection. proof in the Whistleblower Protection Act of her request. This would be worded to convey This point was made perfectly clear by the 1989, and offers choices of forum that vir- that the company has considered and decided recently released internal memorandum tually guarantee whistleblowers will have a to accommodate her request for reassign- from attorneys for Enron. According to fair day in court. Most significant, it closes ment. See comments below re additional Enron’s own counsel, employees who raised the loopholes that have meant whistle- items to be addressed in the memo. concerns over that company’s accounting blowers proceed at their own risk when 2. I suggest that the memo also name a practices had no protection under federal law warning Congress, shareholders or even their designated company officer for her to con- and could be fired. own management or Board Audit Commit- tact in the unlikely future event that she be- With this background in mind, the Na- tees of financial misconduct threatening the lieves she is being retaliated against for hav- tional Whistleblower Center strongly com- health both of their own company and, in ing made the report. Case law suggests that mends you for introducing the Corporate and some cases, the nation’s economy. You have she then will have the burden of reporting

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any perceived retaliation and allowing the are fair game during discovery—the opposi- (c) PURPOSE.—The program shall aggres- company a reasonable opportunity to correct tion typically will request production of vol- sively pursue those activities that will result it before quitting and asserting a construc- umes of sensitive material. Another problem in regulatory approvals and design comple- tive discharge. (Note: If there is any chance is that because accounting practices often tion in a phased approach, with joint govern- that the decision might be made in the fu- involve judgments in gray areas, rather than ment/industry cost sharing, which would ture to discharge the employee for making non-judgmental applications of black-letter allow for the construction and startup of the report—e.g., if the company concludes rules, there are often genuine disputes over new nuclear plants in the United States by that the allegations were not made in good whether a company’s practice or a specific 2010. faith—then this assurance probably should report was materially misleading or com- (d) ACTIVITIES.—In carrying out the pro- not be given, at least until later when (if) plied with some statutory or regulatory re- gram, the Director shall— the company is satisfied that the employee quirements. Third, these are typically jury (1) issue a solicitation to industry seeking was not acting in bad faith or otherwise im- cases—that means they are decided by lay proposals from joint venture project teams properly.) persons when the legal compliance issues are comprised of reactor vendors and power gen- 3. The memo should contain language that often confusing even to the lawyers and ex- eration companies to participate in the Nu- conveys that the other terms of her employ- perts. Fourth, because of the above factors, clear Power 2010 program; ment—specifically, its at-will status—re- they are very expensive and time consuming (2) seek innovative business arrangements, mains unchanged. This is to avoid any future to litigate. such as consortia among designers, construc- claim that the understandings surrounding 4. In addition to the risk of a wrongful dis- tors, nuclear steam supply systems and the transfer constitute a contractual obliga- charge claim, there is the risk that the dis- major equipment suppliers, and plant owner/ tion of some sort. charged employee will seek to convince some operators, with strong and common incen- 4. The new position, as we discussed, government oversight agency (e.g., IRS, tives to build and operate new plants in the should have responsibilities and compensa- SEC, etc.) that the corporation has engaged United States; tion comparable to her current one, to avoid in materially misleading reporting or is oth- (3) conduct the Nuclear Power 2010 pro- any claim of constructive discharge. erwise non-compliant. As with wrongful dis- gram consistent with the findings of A Road- 5. As we discussed, to the extent prac- charge claims, this can create problems even map to Deploy New Nuclear Power Plants in ticable, the fact that she made the report tho the allegations have no merit whatso- the United States by 2010 issued by the Near- should be treated as confidential. ever. Term Deployment Working Group of the Nu- 6. The individual or individuals who are These are, of course, very general com- clear Energy Research Advisory Committee implicated by her allegations should be ad- ments. I will be happy to discuss them in of the Department of Energy; vised to treat the matter confidentially and greater detail at your convenience. (4) rely upon the expertise and capabilities to use discretion regarding any comments to of the Department of Energy national lab- f or about the complaining employee. They oratories and sites in the areas of advanced should be advised that she is not to be treat- AMENDMENTS SUBMITTED AND nuclear fuel cycles and fuels testing, giving ed adversely in any way for having expressed PROPOSED consideration to existing lead laboratory her concerns. designations and the unique capabilities and 7. You indicated that the officer in charge SA 2995. Mr. CRAIG (for himself, Ms. LAN- facilities available at each national labora- of the area to which the employee may be re- DRIEU, Mr. MURKOWSKI, Mr. DOMENICI, and tory and site; assigned would probably need to be advised Mr. THURMOND) proposed an amendment to (5) pursue deployment of both water-cooled of the circumstances. I suggest he be advised amendment SA 2917 proposed by Mr. and gas-cooled reactor designs on a dual at the same time that it is important that DASCHLE (for himself and Mr. BINGAMAN) to track basis that will provide maximum po- she not be treated adversely or differently the bill (S. 517) to authorize funding the De- tential for the success of both; because she made the report. And that the partment of Energy to enhance its mission (6) include participation of international circumstances of the transfer are confiden- areas through technology transfer and part- collaborators in research and design efforts tial and should not be shared with others. nerships for fiscal years 2002 through 2006, where beneficial; and You also asked that I include in this com- and for other purposes. (7) seek to accomplish the essential regu- munication a summary of the possible risks SA 2996. Mr. MURKOWSKI (for himself and latory and technical work, both generic and associated with discharging (or construc- Mr. DASCHLE) proposed an amendment to design-specific, to make possible new nuclear tively discharging) employees who report al- amendment SA 2917 proposed by Mr. plants within this decade. legations of improper accounting practices: DASCHLE (for himself and Mr. BINGAMAN) to (e) AUTHORIZATION OF APPROPRIATIONS.— 1. Texas law does not currently protect the bill (S. 517) supra. There are authorized to be appropriated to corporate whistleblowers. The supreme court SA 2997. Mr. LEVIN (for himself, Mr. BOND, the Secretary to carry out the purposes of has twice declined to create a cause of action Ms. STABENOW, and Ms. MIKULSKI) proposed this section such sums as are necessary for for whistleblowers who are discharged; how- an amendment to amendment SA 2917 pro- fiscal year 2003 and for each fiscal year ever, there were special factors present in posed by Mr. DASCHLE (for himself and Mr. thereafter. both cases that weighed against the plain- BINGAMAN) to the bill (S. 517) supra. tiffs and the court implied that it might f SA 2996. Mr. MURKOWSKI (for himself and Mr. DASCHLE) proposed an reach a different conclusion under other cir- TEXT OF AMENDMENTS cumstances. amendment to amendment SA 2917 pro- 2. Regardless of the whistleblower issue, SA 2995. Mr. CRAIG (for himself, Ms. posed by Mr. DASCHLE (for himself and there is often a risk of a Sabine Pilot claim LANDRIEU, Mr. MURKOWSKI, Mr. DOMEN- Mr. BINGAMAN) to the bill (S. 417) to au- (i.e., allegation of discharge for refusing to ICI, and Mr. THURMOND) proposed an thorize funding the Department of En- participate in an illegal act). Whistleblower amendment to amendment SA 2917 pro- ergy to enhance its mission areas cases in Texas commonly are pled or repled posed by Mr. DASCHLE (for himself and as Sabine Pilot claims—it is often an easy through technology transfer and part- Mr. BINGAMAN) to the bill (S. 517) to au- leap for the plaintiff to make if she had any nerships for fiscal years 2002 through involvement in or duties relating to the al- thorize funding the Department of En- 2006, and for other purposes; as follows: leged improper conduct. For example, some ergy to enhance its mission areas At the appropriate place insert the fol- cases say that if an employee’s duties in- through technology transfer and part- lowing: volve recording accounting data that she nerships for fiscal years 2002 through TITLE —RURAL AND REMOTE knows to be misleading onto records that are 2006, and for other purposes; as follows: COMMUNITY FAIRNESS ACT eventually relied on by others in preparing At the appropriate place in the Amend- SEC. 01.—This Title may be cited as the reports to be submitted to a federal agency ment, insert the following: ‘‘The Rural and Remote Community Fair- (e.g., SEC, IRS, etc.), then the employee can SEC. . NUCLEAR POWER 2010. ness Act.’’. be subject to criminal prosecution even tho (a) DEFINITIONS.—In this section: Subtitle A—Rural and Remote Community she did not originated the misleading data (1) SECRETARY.—The term ‘‘Secretary’’ Development Block Grants and does not prepare the actual document means the Secretary of Energy. SEC. 02.—The Housing and Community submitted to the government. Under such (2) OFFICE.—The term ‘‘Office’’ means the Development Act of 1974 (Public Law 93–383) circumstances, if the employee alleges that Office of Nuclear Energy Science and Tech- is amended by inserting at the end the fol- she was discharged for refusing to record (or nology of the Department of Energy. lowing new title: continuing the practice of recording) the al- (3) DIRECTOR.—The term ‘‘Director’’ means legedly misleading data, then she has stated the Director of the Office of Nuclear Energy ‘‘TITLE IX—RURAL AND REMOTE COM- a claim under the Sabine Pilot doctrine. Science and Technology of the Department MUNITY DEVELOPMENT BLOCK 3. As we discussed, there are a myriad of of Energy. GRANTS problems associated with Sabine Pilot (4) PROGRAM.—The term ‘‘Program’’ means ‘‘SEC. 901.(a) FINDINGS.—The Congress finds claims, regardless of their merits, that in- the Nuclear Power 2010 Program. and declares that— volve allegations of illegal accounting or re- (b) ESTABLISHMENT.—The Secretary shall ‘‘(1) a modern infrastructure, including en- lated practices. One is that the company’s carry out a program, to be managed by the ergy-efficient housing, electricity, tele- accounting practices and books and records Director. communications, bulk fuel, waste water and

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AUTHORIZATIONS.—The Secretary tive energy-related repairs of homes and development in sparsely populated and re- is authorized to make grants to rural and re- other buildings; mote areas, that are not adequately ad- mote communities to carry out activities in ‘‘(2) the acquisition, construction, repair, dressed by existing Federal assistance pro- accordance with the provisions of the title. reconstruction, or installation of reliable grams; For purposes of assistance under section 906, and cost-efficient facilities for the genera- ‘‘(3) in the past, Federal assistance has there are authorized to be appropriated tion, transmission or distribution of elec- been instrumental in establishing electric $100,000,000 for each of fiscal years 2003 tricity, and telecommunications, for con- and other utility service in many developing through 2009. sumption in a rural and remote community regions of the Nations, and that Federal as- ‘‘SEC. 904. STATEMENT OF ACTIVITIES AND or communities; sistance continues to be appropriate to en- REVIEW. ‘‘(3) the acquisition, construction, repair, sure that electric and other utility systems ‘‘(a) Prior to the receipt in any fiscal year reconstruction, remediation or installation in rural areas conform with modern stand- of a grant under section 906 by any rural and of facilities for the safe storage and efficient ards of safety, reliability, efficiency and en- remote community, the grantee shall have management of bulk fuel by rural and re- vironmental protection; and prepared and submitted to the Secretary a ‘‘(4) the future welfare of the Nation and mote communities, and facilities for the dis- final statement of rural and remote commu- the well-being of its citizens depend on the tribution of such fuel to consumers in a rural nity development objectives and projected establishment and maintenance of viable or remote communities; use of funds. rural and remote communities as social, eco- ‘‘(4) facilities and training to reduce costs ‘‘(b) In order to permit public examination nomic and political entities. of maintaining and operating generation, ‘‘(b) PURPOSE.—The purpose of this title is and appraisal of such statements, to enhance distribution or transmission systems to a the development and maintenance of viable the public accountability of grantees, and to rural and remote community or commu- rural and remote communities through the facilitate coordination of activities with dif- nities; provision of efficient housing, and reason- ferent levels of government, the grantee ‘‘(5) the institution of professional manage- ably priced and environmentally sound en- shall in a timely manner— ment and maintenance services for elec- ergy, water, waste water, and bulk fuel, tele- ‘‘(1) furnish citizens information con- tricity generation transmission or distribu- communications and utility services to those cerning the amount of funds available for tion to a rural and remote community or communities that do not have those services rural and remote community development communities; or who currently bear costs of those services activities and the range of activities that ‘‘(6) the investigation of the feasibility of that are significantly above the national av- may be undertaken; alternate energy sources for a rural and re- erage. ‘‘(2) publish a proposed statement in such mote community or communities; ‘‘SEC. 902. DEFINITIONS.—As used in this manner to afford affected citizens an oppor- ‘‘(7) acquisition, construction, repair, re- title: tunity to examine its content and to submit construction, operation, maintenance, or in- ‘‘(a) The term ‘unit of general local govern- comments on the proposed statement and on stallation of facilities for water or waste ment’ means any city, county, town, town- the community development performance of water service; ship, parish, village, borough (organized or the grantee; ‘‘(8) the acquisition of disposition of real unorganized) or other general purpose polit- ‘‘(3) provide citizens with reasonable access property (including air rights, water rights, ical subdivision of a State, Guam, the Com- to records regarding the past use of funds re- and other interests therein) for eligible rural monwealth of the Northern Mariana Islands, ceived under section 906 by the grantee; and and remote community development activi- Puerto Rico, the Republic of the Marshall Is- ‘‘(4) provide citizens with reasonable notice ties; and lands, the Federated States of Micronesia, of, and opportunity to comment on, any sub- ‘‘(9) activities necessary to develop and im- the Republic of Palau, the Virgin Islands, stantial change proposed to be made in the plement a comprehensive rural and remote and American Samoa, a combination of such use of funds received under section 906 from development plan, including payment of rea- political subdivisions that is recognized by one eligible activity to another. sonable administrative costs related to plan- the Secretary, and the District of Columbia; ‘‘The final statement shall be made available ning and execution of rural and remote com- or any other appropriate organization of citi- to the public, and a copy shall be furnished munity development activities. zens of a rural and remote community that to the Secretary. Any final statement of ac- ‘‘(b) eligible activities may be undertaken the Secretary may identify. tivities may be modified or amended from either directly by the rural and remote com- ‘‘(b) The term ‘population’ means total time to time by the grantee in accordance munity, or by the rural and remote commu- resident population based on data compiled with the same. Procedures required in this nity through local electric utilities. by the United States Bureau of the Census ‘‘SEC. 906. ALLOCATION AND DISTRIBUTION OF and referable to the same point or period in paragraph for the preparation and submis- FUNDS.—For each fiscal year, of the amount time. sion of such statement. ‘‘(c) The term ‘Native American group’ ‘‘(c) Each grantee shall submit to the Sec- approved in an appropriation act under sec- means any Indian tribe, band group, and na- retary, at a time determined by the Sec- tion 903 for grants in any year, the Secretary tion, including Alaska Indians, Aleuts, and retary, a performance and evaluation report, shall distribute to each rural and remote Eskimos, and any Alaskan Native Village, of concerning the use of funds made available community which has filed a final statement the United States, which is considered an eli- under section 906, together with an assess- of rural and remote community development gible recipient under the Indian Self Deter- ment by the grantee of the relationship of objectives and projected use of funds under mination and Education Assistance Act such use to the objectives identified in the section 904, an amount which shall be allo- (Public Law 93–638) or was considered an eli- grantee’s statement under subsection (a) and cated among the rural and remote commu- gible recipient under chapter 67 of title 31, to the requirements of subsection (b). The nities that filed a final statement of rural United States Code, prior to the repeal of grantee’s report shall indicate its pro- and remote community development objec- such chapter. grammatic accomplishments, the nature of tives and projected use of funds under sec- ‘‘(d) The term ‘Secretary’ means the Sec- and reasons for any changes in the grantee’s tion 904 proportionate to the percentage that retary of Housing and Urban Development. program objectives, and indications of how the average retail price per kilowatt hour of ‘‘(e) The term ‘rural and remote commu- the grantee would change its programs as a electricity for all classes of consumers in the nity’ means a unit of local general govern- result of its experiences. rural and remote community exceeds the na- ment or Native American group which is ‘‘(d) Any rural and remote community may tional average retail price per kilowatt hour served by an electric utility that has 10,000 retain any program income that is realized for electricity for all consumers in the or less customers with an average retail cost from any grant made by the secretary under United States, as determined by data proper kilowatt hour of electricity that is equal section 906 if (1) such income was realized vided by the Department of Energy’s Energy to or greater than 150 percent of the average after the initial disbursement of the funds Information Administration. In allocating retail cost per kilowatt hour of electricity received by such unit of general local gov- funds under this section, the Secretary shall for all consumers in the United States, as de- ernment under such section; and (2) such give special consideration to those rural and termined by data provided by the Energy In- unit of general local government has agreed remote communities that increase econo- formation Administration of the Department that it will utilize the program income for mies of scale through consolidation of serv- of Energy. eligible rural and remote community devel- ices, affiliation and regionalization of eligi- ‘‘(f) The term ‘alternative energy sources’ opment activities in accordance with the ble activities under this title. includes non-traditional means of providing provisions of this title; except that the Sec- SEC. 907. REMENDIES FOR NONCOMPLIANCE.— electrical energy, including, but not limited retary may by regulation, exclude from con- The provisions of section 111 of the Housing to, wind, solar, biomass, municipal solid sideration as program income any amounts and Community Development Act of 1974 waste, hydroelectric, geothermal and tidal determined to be so small that compliance shall apply to assistance distributed under power. with the subsection creates an unreasonable this title.’’.

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Subtitle B—Rural and Remote Community area represented by a unit of general local ‘‘(2) PUBLIC NOTICE AND COMMENT.—In order Electrification Grants government or a Native American group— to enhance public accountability and facili- SEC. 04.—After section 313(b) of the rural ‘‘(A) the borders of which are not adjacent tate the coordination of activities among Electrification Act of 1936, add the following to a metropolitan area; different levels of government, an eligible new subsection: ‘‘(B) in which— unit of general local government, Native ‘‘(i) the population outmigration level ‘‘(c) RURAL AND REMOTE COMMUNITY ELEC- American groups or eligible Indian tribe that equals or exceeds 1 percent over the most re- TRIFICATION GRANTS.—The Secretary is au- receives a grant under this section shall, as cent five year period, as determined by the thorized to provide grants to eligible bor- soon as practicable after such receipt, pro- Secretary of Housing and Urban Develop- rowers under this Act for the purpose of in- vide the residents of the rural recovery area ment; and, creasing energy efficiency, lowering or stabi- served by the eligible unit of general local ‘‘(ii) the per capita income is less than that government, Native American groups or eli- lizing electric rates to end users, or proof the national nonmetropolitan average; viding or modernizing electric facilities in gible Indian tribe, as applicable, with— and ‘‘(A) a copy of the final statement sub- rural and remote communities. ‘‘(C) that does not include a city with a mitted under paragraph (1)(B); ‘‘(d) For purposes of subsection (c), there is population of more than 15,000. ‘‘(B) information concerning the amount authorized to be appropriated $20,000,000 for ‘‘(6) UNIT OF GENERAL LOCAL GOVERNMENT.— made available under this section and the el- each of fiscal years 2003–2009.’’. ‘‘(A) IN GENERAL.—The term ‘unit of gen- igible activities to be undertaken with that SEC. 06.—There is hereby authorized to be eral local government’ means any city, coun- amount; appropriated $5,000,000 for each of fiscal ty, town, township, parish, village, borough ‘‘(C) reasonable access to records regarding years 2003–2009 to the Denali commission es- (organized or unorganized), or other general the use of any amounts received by the eligi- tablished by Public Law 105–227, 42 U.S.C. purpose political subdivision of a State; ble unit of general local government, Native 3121 for the purposes of funding the power Guam, the Commonwealth of the Northern American groups or eligible Indian tribe cost equalization program. Mariana Islands, the Virgin Islands, Puerto under this section in any preceding fiscal Subtitle C—Rural Recovery Community Rico, and American Samoa, or a general pur- year; and Development Block Grants pose political subdivision thereof; a com- ‘‘(D) reasonable notice of, and opportunity SEC. 07.—The Housing and Community bination of such political subdivisions that, to comment on, any substantial change pro- Development Act of 1974 (42 U.S.C. 5301 et except as provided in section 106(d)(4), is rec- posed to be made in the use of amounts re- seq.) is amended by adding at the end the fol- ognized by the Secretary; and the District of ceived under this section from one eligible lowing: Columbia. activity to another. ‘‘(B) OTHER ENTITIES INCLUDED.—The term ‘‘(e) DISTRIBUTION OF GRANTS.— ‘‘Sec. 123. Rural Recovery Community Development ‘‘(1) IN GENERAL.—In each fiscal year, the Block Grants. also includes a State or a local public body or agency (as defined in section 711 of the Secretary shall distribute to each eligible ‘‘(a) FINDINGS; PURPOSE.— unit of general local government, Native ‘‘(1) FINDINGS.—Congress finds that— Housing and Urban Development Act of 1970), American groups and eligible Indian tribe ‘‘(A) a modern infrastructure, including af- community association, or other entity, that that meets the requirements of subsection fordable housing, wastewater and water serv- is approved by the Secretary for the purpose (d)(1) a grant in an amount described in para- ice, and advanced technology capabilities is of providing public facilities or services to a graph (2). a necessary ingredient of a modern society new community as part of a program meeting the eligibility standards of section 712 of ‘‘(2) AMOUNT.—Of the total amount made and development of a prosperous economy available to carry out this section in each with minimal environmental impacts; the Housing and Urban Development Act of 1970 or title IV of the Housing and Urban De- fiscal year, the Secretary shall distribute to ‘‘(B) the Nation’s rural areas face critical each grantee the amount equal to the great- social, economic, and environmental prob- velopment Act of 1968. ‘‘(c) GRANT AUTHORITY.—The Secretary er of— lems, arising in significant measure from the ‘‘(A) the pro rata share of the grantee, as growing cost of infrastructure development may make grants in accordance with this section to eligible units of general local gov- determined by the Secretary, based on the in rural areas that suffer from low per capita combined annual population outmigration income and high rates of outmigration and ernment, Native American groups and eligible Indian tribes that meet the requirements level (as determined by the Secretary of are not adequately addressed by existing Housing and Urban Development) and the of subsection (d) to carry out eligible activi- Federal assistance programs; and per capita income for the rural recovery area ties described in subsection (f). ‘‘(C) the future welfare of the National and served by the grantee; or the well-being of its citizens depend on the ‘‘(d) ELIGIBILITY REQUIREMENTS.— ‘‘(1) STATEMENT OF RURAL DEVELOPMENT OB- ‘‘(B) $200,000. establishment and maintenance of viable ‘‘(f) ELIGIBLE ACTIVITIES.—Each grantee JECTIVES.—In order to receive a grant under rural areas as social, economic, and political shall use amounts received under this sec- this section for a fiscal year, an eligible unit entities. tion for one or more of the following eligible of general local government, Native Amer- ‘‘(2) PURPOSE.—The purpose of this section activities, which may be undertaken either ican group or eligible Indian tribe— is to provide for the development and main- ‘‘(A) shall— directly by the grantee, or by any local eco- tenance of viable rural areas through the ‘‘(i) publish a proposed statement of rural nomic development corporation, regional provision of affordable housing and commu- development objectives and a description of planning district, nonprofit community de- nity development assistance to eligible units the proposed eligible activities described in velopment corporation, or statewide develop- of general local government and eligible Na- subsection (f) for which the grant will be ment organization authorized by the grant- tive American groups in rural areas with ex- used; and ee: cessively high rates of outmigration and low ‘‘(ii) afford residents of the rural recovery ‘‘(1) the acquisition, construction, repair, per capita income levels. area served by the eligible unit of general reconstruction, operation, maintenance, or ‘‘(b) DEFINITIONS.—In this section: local government, Native American groups installation of facilities for water and waste- ‘‘(1) ELIGIBLE UNIT OF GENERAL LOCAL GOV- or eligible Indian tribe with an opportunity water service or any other infrastructure ERNMENT.—The term ‘eligible unit of general to examine the contents of the proposed needs determined to be critical to the further development or improvement of a des- local government’ means a unit of general statement and the proposed eligible activi- ignated industrial park; local government that is the governing body ties published under clause (i), and to submit of a rural recovery area. ‘‘(2) the acquisition or disposition of real comments to the eligible unit of general property (including air rights, water rights, ‘‘(2) ELIGIBLE INDIAN TRIBE.—The term ‘eli- local government, Native American group or gible Indian tribe’ means the governing body and other interests therein) for rural com- eligible Indian tribe, as applicable, on the munity development activities; of an Indian tribe that is located in a rural proposed statement and the proposed eligible recovery area. ‘‘(3) the development of telecommuni- activities, and the overall community devel- cations infrastructure within a designated ‘‘(3) GRANTEE.—The term ‘grantee’ means opment performance of the eligible unit of industrial park that encourages high tech- an eligible unit of general local government general local government, Native American or eligible Indian tribe that receives a grant nology business development in rural areas; groups or eligible Indian tribe, as applicable; ‘‘(4) activities necessary to develop and im- under this section. and plement a comprehensive rural development ‘‘(4) NATIVE AMERICAN GROUP.—The term ‘‘(B) based on any comments received plan, including payment of reasonable ad- ‘Native American group’ means any Indian under subparagraph (A)(ii), prepare and sub- ministrative costs related to planning and tribe, band, group, and nation, including mit to the Secretary— execution of rural development activities; or Alaska Indians, Aleuts, and Eskimos, and ‘‘(i) a final statement of rural development ‘‘(5) affordable housing initiatives. any Alaskan Native Village, of the United objectives; ‘‘(g) PERFORMANCE AND EVALUATION RE- States, which is considered an eligible recipi- ‘‘(ii) a description of the eligible activities PORT.— ent under the Indian Self-Determination and described in subsection (f) for which a grant ‘‘(1) IN GENERAL.—Each grantee shall annu- Education Assistance Act (Public Law 93– received under this section will be used; and ally submit to the Secretary a performance 638) or was considered an eligible recipient ‘‘(iii) a certification that the eligible unit and evaluation report, concerning the use of under chapter 67 of title 31, United States of general local government, Native Amer- amounts received under this section. Code, prior to the repeal of such chapter. ican groups or eligible Indian tribe, as appli- ‘‘(21) CONTENTS.—Each report submitted ‘‘(5) RURAL RECOVERY AREA.—The term cable, will comply with the requirements of under paragraph (1) shall include a descrip- ‘rural recovery area’ means any geographic paragraph (2). tion of—

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1795 ‘‘(A) the eligible activities carried out by amended by inserting before the period at through (8) of section 8066(c) of the Depart- the grantee with amounts received under the end the following: ‘‘or such other number ment of Defense Appropriations Act, 1985 (as this section, and the degree to which the as the Secretary prescribes under subsection contained in section 101(h) of Public Law 98– grantee has achieved the rural development (c)’’. 473; 98 Stat. 1936), with the following excep- objectives included in the final statement (d) ENVIRONMENTAL ASSESSMENT.—When tions: submitted under subsection (d)(1); issuing final regulations setting forth in- (1) REFERENCES TO RESOLUTION.—The ref- ‘‘(B) the nature of and reasons for any creased average fuel economy standards erences in such paragraphs to a resolution change in the rural development objectives under this section, the Secretary of Trans- shall be deemed to refer to the bill described or the eligible activities of the grantee after portation shall also issue an environmental in subsection (b). submission of the final statement under sub- assessment of the effects of the implementa- (2) COMMITTEES OF JURISDICTION.—The com- section (d)(1); and tion of the increased standards on the envi- mittees to which the bill is referred under ‘‘(C) any manner in which the grantee ronment under the National Environmental this subsection shall— would change the rural development objec- Policy Act of 1969 (42 U.S.C. 4321 et seq.). (A) in the Senate, be the Committee on tives of the grantee as a result of the experi- (e) AUTHORIZATION OF APPROPRIATIONS.— Commerce, Science, and Transportation; and ence of the grantee in administering There is authorized to be appropriated to the (B) in the House of Representatives, be the amounts received under this section. Department of Transportation for fiscal year Committee on Energy and Commerce. ‘‘(h) RETENTION OF INCOME.—A grantee may 2003, to remain available until expended, (3) AMENDMENTS.— retain any income that is realized from the $2,000,000 to carry out this section. (A) AMENDMENTS IN ORDER.—Only four grant, if— SEC. 802. EXPEDITED PROCEDURES FOR CON- amendments to the bill are in order in each ‘‘(1) the income was realized after the ini- GRESSIONAL INCREASE IN FUEL House, as follows: tial disbursement of amounts to the grantee ECONOMY STANDARDS. (i) Two amendments proposed by the ma- under this section; and (a) CONDITION FOR APPLICABILITY.—If the jority leader of that House. ‘‘(2) the— Secretary of Transportation fails to issue (ii) Two amendments proposed by the mi- ‘‘(A) grantee agrees to utilize the income final regulations with respect to non-pas- nority leader of that House. for 1 or more eligible activities; or senger automobiles under section 801, or fails (B) FORM AND CONTENT.—To be in order ‘‘(B) amount of the income is determined to issue final regulations with respect to pas- under subparagraph (A), an amendment shall by the Secretary to be so small that compli- senger automobiles under such section, on or propose to strike all after the enacting ance with subparagraph (A) would create an before the date by which such final regula- clause and substitute text that only includes unreasonable administrative burden on the tions are required by such section to be the same text as is proposed to be stricken grantee. issued, respectively, then this section shall except for one or more different numbers in ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— apply with respect to a bill described in sub- the text. There is authorized to be appropriate to section (b). (C) DEBATE, ET CETERA.—Subparagraph (B) carry out this section $100,000,000 for each of (b) BILL.—A bill referred to in this sub- of section 8066(c)(5) of the Department of De- fiscal years 2003 through 2009.’’. section is a bill that satisfies the following fense Appropriations Act, 1985 (98 Stat. 1936) requirements: shall apply to the consideration of each SA 2997. Mr. LEVIN (for himself, Mr. (1) INTRODUCTION.—The bill is introduced amendment proposed pursuant to subpara- BOND, Ms. STABENOW, and Ms. MIKUL- by one or more Members of Congress not graph (A) of this paragraph in the same man- SKI) proposed an amendment to amend- later than 60 days after the date referred to ner as such subparagraph (B) applies to de- ment SA 2917 proposed by Mr. DASCHLE in subsection (a). batable motions. (for himself and Mr. BINGAMAN) to the (2) TITLE.—The title of the bill is as fol- SEC. 803. REVISED CONSIDERATIONS FOR DECI- lows: ‘‘A bill to establish new average fuel SIONS ON MAXIMUM FEASIBLE AV- bill (S. 517) to authorize funding the ERAGE FUEL ECONOMY. Department of Energy to enhance its economy standards for certain motor vehicles.’’. Section 32902(f) of title 49, United States mission areas through technology Code, is amended to read as follows: (3) TEXT.—The bill provides after the en- ‘‘(f) CONSIDERATIONS FOR DECISIONS ON transfer and partnerships for fiscal acting clause only the text specified in sub- MAXIMUM FEASIBLE AVERAGE FUEL ECON- years 2002 through 2006, and for other paragraph (A) or (B) or any provision de- purposes; as follows: OMY.—When deciding maximum feasible av- scribed in subparagraph (C), as follows: erage fuel economy under this section, the In title VIII, strike the heading for subtitle (A) NON-PASSENGER AUTOMOBILES.—In the Secretary of Transportation shall consider A and all that follows through section 811 case of a bill relating to a failure timely to the following matters: and insert the following: issue final regulations relating to non-pas- ‘‘(1) Technological feasibility. Subtitle A—CAFE Standards, Alternative senger automobiles, the following text: ‘‘(2) Economic practicability. Fuels, and Advanced Technology ‘‘That, section 32902 of title 49, United States ‘‘(3) The effect of other motor vehicle SEC. 801. INCREASED FUEL ECONOMY STAND- Code, is amended by adding at the end the standards of the Government on fuel econ- ARDS. following new subsection: omy. (a) REQUIREMENT FOR NEW REGULATIONS.— ‘‘ ‘(l) NON-PASSENGER AUTOMOBILES.—The ‘‘(4) The need of the United States to con- (1) IN GENERAL.—The Secretary of Trans- average fuel economy standard for non-pas- serve energy. portation shall issue, under section 32902 of senger automobiles manufactured by a man- ‘‘(5) The desirability of reducing United title 49, United States Code, new regulations ufacturer in a model year after model year States dependence on imported oil. setting forth increased average fuel economy ll shall be ll miles per gallon.’ ’’, the ‘‘(6) The effects of the average fuel econ- standards for automobiles that are deter- first blank space being filled in with a sub- omy standards on motor vehicle and pas- mined on the basis of the maximum feasible section designation, the second blank space senger safety. average fuel economy levels for the auto- being filled in with the number of a year, and ‘‘(7) The effects of increased fuel economy mobiles, taking into consideration the mat- the third blank space being filled in with a on air quality. ters set forth in subsection (f) of such sec- number. ‘‘(8) The adverse effects of average fuel tion. (B) PASSENGER AUTOMOBILES.—In the case economy standards on the relative competi- (2) TIME FOR ISSUING REGULATIONS.— of a bill relating to a failure timely to issue tiveness of manufacturers. (A) NON-PASSENGER AUTOMOBILES.—For final regulations relating to passenger auto- ‘‘(9) The effects of compliance with average non-passenger automobiles, the Secretary of mobiles, the following text: fuel economy standards on levels of employ- Transportation shall issue the final regula- ‘‘That, section 32902(b) of title 49, United ment in the United States. tions not later than 15 months after the date States Code, is amended to read as follows: ‘‘(10) The cost and lead time necessary for of the enactment of this Act. ‘‘ ‘(b) PASSENGER AUTOMOBILES.—Except as the introduction of the necessary new tech- (B) PASSENGER AUTOMOBILES.—For pas- provided in this section, the average fuel nologies. senger automobiles, the Secretary of Trans- economy standard for passenger automobiles ‘‘(11) The potential for advanced tech- portation shall issue— manufactured by a manufacturer in a model nology vehicles, such as hybrid and fuel cell (i) the proposed regulations not later than year after model year ll shall be ll miles vehicles, to contribute to the achievement of 180 days after the date of the enactment of per gallon.’ ’’, the first blank space being significant reductions in fuel consumption. this Act; and filled in with the number of a year and the ‘‘(12) The extent to which the necessity for (ii) the final regulations not later than two second blank space being filled in with a vehicle manufacturers to incur near-term years after that date. number. costs to comply with the average fuel econ- (b) PHASED INCREASES.—The regulations (C) SUBSTITUTE TEXT.—Any text sub- omy standards adversely affects the avail- issued pursuant to subsection (a) shall speci- stituted by an amendment that is in order ability of resources for the development of fy standards that take effect successively under subsection (c)(3). advanced technology for the propulsion of over several vehicle model years not exceed- (c) EXPEDITED PROCEDURES.—A bill de- motor vehicles. ing 15 vehicle model years. scribed in subsection (b) shall be considered ‘‘(13) The report of the National Research (c) CLARIFICATION OF AUTHORITY TO AMEND in a House of Congress in accordance with Council that is entitled ‘Effectiveness and PASSENGER AUTOMOBILE STANDARD.—Section the procedures provided for the consider- Impact of Corporate Average Fuel Economy 32902(b) of title 49, United States Code, is ation of joint resolutions in paragraphs (3) Standards’, issued in January 2002.’’.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1796 CONGRESSIONAL RECORD — SENATE March 12, 2002 SEC. 804. EXTENSION OF MAXIMUM FUEL ECON- (A) a motor vehicle that draws propulsion (2) Hydrogen storage. OMY INCREASE FOR ALTERNATIVE energy from onboard sources of stored en- (3) Advanced vehicle engine and emission FUELED VEHICLES. ergy that are both— control systems. Section 32906(a)(1) of title 49, United States (i) an internal combustion or heat engine (4) Advanced batteries and power elec- Code, is amended— using combustible fuel; and tronics for hybrid vehicles. (1) in subparagraph (A), by striking ‘‘1993– (ii) a rechargeable energy storage system; (5) Advanced fuels. 2004’’ and inserting ‘‘1993 through 2008’’; and and (6) Advanced materials. (2) in subparagraph (B), by striking ‘‘2005– (B) any other vehicle that is defined as a (b) AUTHORIZATION OF APPROPRIATIONS.— 2008’’ and inserting ‘‘2009 through 2012’’. hybrid vehicle in regulations prescribed by There is authorized to be appropriated to the SEC. 805. PROCUREMENT OF ALTERNATIVE the Secretary of Energy for the administra- Department of Energy for fiscal year 2003, FUELED AND HYBRID LIGHT DUTY TRUCKS. tion of title III of the Energy Policy Act of the amount of $225,000,000 for carrying out (a) VEHICLE FLEETS NOT COVERED BY RE- 1992. the expanded research and development pro- QUIREMENT IN ENERGY POLICY ACT OF 1992.— (2) ALTERNATIVE FUELED VEHICLE.—The gram provided for under this section. (1) HYBRID VEHICLES.—The head of each term ‘‘alternative fueled vehicle’’ has the SEC. 808. DIESEL FUELED VEHICLES. agency of the executive branch shall coordi- meaning given that term in section 301 of the (a) DIESEL COMBUSTION AND AFTER TREAT- nate with the Administrator of General Energy Policy Act of 1992 (42 U.S.C. 13211). MENT TECHNOLOGIES.—The Secretary of En- Services to ensure that only hybrid vehicles (d) INAPPLICABILITY TO DEPARTMENT OF DE- ergy shall accelerate research and develop- are procured by or for each agency fleet of FENSE.—This section does not apply to the ment directed toward the improvement of light duty trucks that is not in a fleet of ve- Department of Defense, which is subject to diesel combustion and after treatment tech- hicles to which section 303 of the Energy Pol- comparable requirements under section 318 nologies for use in diesel fueled motor vehi- icy Act of 1992 (42 U.S.C. 13212) applies. of the National Defense Authorization Act cles. (2) WAIVER AUTHORITY.—The head of an for Fiscal Year 2002 (Public Law 107–107; 115 (b) GOAL.— agency, in consultation with the Adminis- Stat. 1055; 10 U.S.C. 2302 note). (1) COMPLIANCE WITH TIER 2 EMISSION STAND- trator, may waive the applicability of the SEC. 806. USE OF ALTERNATIVE FUELS. ARDS BY 2010.—The Secretary shall carry out policy regarding the procurement of hybrid (a) EXCLUSIVE USE OF ALTERNATIVE FUELS subsection (a) with a view to developing and vehicles in paragraph (1) to that agency to IN DUAL FUELED VEHICLES.—The head of each demonstrating diesel technology meeting the extent that the head of that agency de- agency of the executive branch shall coordi- tier 2 emission standards not later than 2010. termines necessary— nate with the Administrator of General (2) TIER 2 EMISSION STANDARDS DEFINED.—In (A) to meet specific requirements of the Services to ensure that, not later than Janu- this subsection, the term ‘‘tier 2 emission agency for capabilities of light duty trucks; ary 1, 2009, the fuel actually used in the fleet standards’’ means the motor vehicle emis- (B) to procure vehicles consistent with the of dual fueled vehicles used by the agency is sion standards promulgated by the Adminis- standards applicable to the procurement of an alternative fuel. trator of the Environmental Protection fleet vehicles for the Federal Government; (b) WAIVER AUTHORITY.— Agency on February 10, 2000, under sections (C) to adjust to limitations on the commer- (1) CAPABILITY WAIVER.— 202 and 211 of the Clean Air Act to apply to cial availability of light duty trucks that are (A) AUTHORITY.—If the Secretary of Trans- passenger cars, light trucks, and larger pas- hybrid vehicles; or portation determines that not all of the dual senger vehicles of model years after the 2003 (D) to avoid the necessity of procuring a fueled vehicles can operate on alternative vehicle model year. hybrid vehicle for the agency when each of fuels at all times, the Secretary may waive SEC. 809. FUEL CELL DEMONSTRATION. the hybrid vehicles available for meeting the the requirement of subsection (a) in part, but (a) PROGRAM REQUIRED.—The Secretary of requirements of the agency has a cost to the only to the extent that— Energy and the Secretary of Defense shall United States that exceeds the costs of com- (i) not later than January 1, 2009, not less jointly carry out a program to dem- parable nonhybrid vehicles by a factor that than 50 percent of the total annual volume of onstrate— is significantly higher than the difference fuel used in the dual fueled vehicles shall be (1) fuel cell technologies developed in the between— alternative fuels; and PNGV and Freedom Car programs; (i) the real cost of the hybrid vehicle to re- (ii) not later than January 1, 2011, not less (2) fuel cell technologies developed in retail purchasers, taking into account the ben- than 75 percent of the total annual volume of search and development programs of the De- efit of any tax incentives available to retail fuel used in the dual fueled vehicles shall be partment of Defense; and purchasers for the purchase of the hybrid ve- alternative fuels. (3) follow-on fuel cell technologies. hicle; and (B) EXPIRATION.—In no case may a waiver (b) PURPOSES OF PROGRAM.—The purposes (ii) the costs of the comparable nonhybrid under subparagraph (A) remain in effect of the program are to identify and support vehicles to retail purchasers. after December 31, 2012. technological advances that are necessary to (3) APPLICABILITY TO PROCUREMENTS AFTER (2) REGIONAL FUEL AVAILABILITY WAIVER.— achieve accelerated availability of fuel cell FISCAL YEAR 2004.—This subsection applies The Secretary may waive the applicability technology for use both for nonmilitary and with respect to procurements of light duty of the requirement of subsection (a) to vehi- military purposes. trucks in fiscal year 2005 and subsequent fis- cles used by an agency in a particular geo- (c) COOPERATION WITH INDUSTRY.— cal years. graphic area where the alternative fuel oth- (1) IN GENERAL.—The demonstration pro- (b) REQUIREMENT TO EXCEED REQUIREMENT erwise required to be used in the vehicles is IN ENERGY POLICY ACT OF 1992.— gram shall be carried out in cooperation not reasonably available to retail purchasers (1) LIGHT DUTY TRUCKS.—The head of each with industry, including the automobile of the fuel, as certified to the Secretary by agency of the executive branch shall coordi- manufacturing industry and the automotive nate with the Administrator of General the head of the agency. systems and component suppliers industry. EFINITIONS.—In this section: Services to ensure that, of the light duty (c) D (2) COST SHARING.—The Secretary of En- trucks procured in fiscal years after fiscal (1) ALTERNATIVE FUEL.—The term ‘‘alter- ergy and the Secretary of Defense shall pro- year 2004 for the fleets of light duty vehicles native fuel’’ has the meaning given that vide for industry to bear, in cash or in kind, of the agency to which section 303 of the En- term in section 32901(a)(1) of title 49, United at least one-half of the total cost of carrying ergy Policy Act of 1992 (42 U.S.C. 13212) ap- States Code. out the demonstration program. plies— (2) DUAL FUELED VEHICLE.—The term ‘‘dual (d) DEFINITIONS.—In this section: (A) five percent of the total number of such fueled vehicle’’ has the meaning given the (1) PNGV PROGRAM.—The term ‘‘PNGV pro- trucks that are procured in each of fiscal term ‘‘dual fueled automobile’’ in section gram’’ means the Partnership for a New Gen- years 2005 and 2006 are alternative fueled ve- 32901(a)(8) of title 49, United States Code. eration of Vehicles, a cooperative program hicles or hybrid vehicles; and (3) FLEET.—The term ‘‘fleet’’, with respect engaged in by the Departments of Com- (B) ten percent of the total number of such to dual fueled vehicles, has the meaning that merce, Energy, Transportation, and Defense, trucks that are procured in each fiscal year is given that term with respect to light duty the Environmental Protection Agency, the after fiscal year 2006 are alternative fueled motor vehicles in section 301(9) of the Energy National Science Foundation, and the Na- vehicles or hybrid vehicles. Policy Act of 1992 (42 U.S.C. 13211(9)). tional Aeronautics and Space Administra- (2) COUNTING OF TRUCKS.—Light duty SEC. 807. HYBRID ELECTRIC AND FUEL CELL VE- tion with the automotive industry for the trucks acquired for an agency of the execu- HICLES. purpose of developing a new generation of tive branch that are counted to comply with (a) EXPANSION OF SCOPE.—The Secretary of vehicles with capabilities resulting in sig- section 303 of the Energy Policy Act of 1992 Energy shall expand the research and devel- nificantly improved fuel efficiency together (42 U.S.C. 13212) for a fiscal year shall be opment program of the Department of En- with low emissions without compromising counted to determine the total number of ergy on advanced technologies for improving the safety, performance, affordability, or light duty trucks procured for that agency the environmental cleanliness of vehicles to utility of the vehicles. for that fiscal year for the purposes of para- emphasize research and development on the (2) FREEDOM CAR PROGRAM.—The term graph (1), but shall not be counted to satisfy following: ‘‘Freedom Car program’’ means a coopera- the requirement in that paragraph. (1) Fuel cells, including— tive research program engaged in by the De- (c) DEFINITIONS.—In this section: (A) high temperature membranes for fuel partment of Energy with the United States (1) HYBRID VEHICLE.—The term ‘‘hybrid ve- cells; and Council on Automotive Research as a follow- hicle’’ means— (B) fuel cell auxiliary power systems. on to the PNGV program.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY March 12, 2002 CONGRESSIONAL RECORD — SENATE S1797 SEC. 810. BUS REPLACEMENT. COMMITTEE ON ENVIRONMENT AND PUBLIC 2:30 p.m. for a hearing regarding ‘‘Crit- (a) REQUIREMENT FOR STUDY.—The Sec- WORKS ical Skills for National Security and retary of Transportation shall carry out a Mr. REID. Mr. President, I ask unan- the The Homeland Security Federal study to determine how best to provide for imous consent that the Committee on Workforce Act (S. 1800).’’ converting the composition of the fleets of Environment and Public Works be au- buses in metropolitan areas and school sys- The PRESIDING OFFICER. Without tems from buses utilizing current diesel thorized to meet on Tuesday, March 12, objection it is so ordered. technology to— 2002 at 2:30 p.m. to hold a hearing to re- SUBCOMMITTEE ON PUBLIC HEALTH (1) buses that draw propulsion from on- ceive testimony on the proposed First Mr. REID. Mr. President, I ask unan- board fuel cells; Responder Initiative in President imous consent that the Committee on (2) buses that are hybrid electric vehicles; Bush’s FY03 budget. The hearing will Health, Education, Labor and Pen- (3) buses that are fueled by clean-burning be held in SD–406. fuels, such as renewable fuels (including ag- sions, Subcommittee on Public The PRESIDING OFFICER. Without Healths, be authorized to meet for a riculture-based biodiesel fuels), natural gas, objection, it is so ordered. and ultra-low sulphur diesel; hearing on The Health Care Crisis of (4) buses that are powered by clean diesel COMMITTEE ON FINANCE the Uninsured: What are the Solutions engines: or Mr. REID. Mr. President, I ask unan- during the session of the Senate on (5) an assortment of buses described in imous consent that the Committee on Tuesday, March 12, 2002, at 10 a.m. paragraphs (1), (2), (3), and (4). Finance be authorized to meet during The PRESIDING OFFICER. Without (b) REPORT.— the session of the Senate on Tuesday, objection it is so ordered. (1) REQUIREMENT.—The Secretary of Trans- March 12, 2002 at 10 a.m. to hear testi- portation shall submit a report on the re- SUBCOMMITTEE ON SUPERFUND, TOXICS, RISK, sults of the study on bus fleet conversions mony on ‘‘Welfare Reform: What Have AND WASTE MANAGEMENT under subsection (a) to Congress. We Learned?’’ Mr. REID. Mr. President, I ask unan- (2) CONTENT.—The report on bus fleet con- The PRESIDING OFFICER. Without imous consent that the Committee on versions shall include the following: objection, it is so ordered. Environment and Public Works, Sub- (A) An assessment of effectuating conver- COMMITTEE ON GOVERNMENTAL AFFAIRS committee on Superfund, Toxics, Risk, sions by the following means: Mr. REID. Mr. President, I ask unan- and Waste Management be authorized (i) Replacement of buses. (ii) Replacement of power and propulsion imous consent that the Committee on to meet on Tuesday, March 12, 2002 at systems in buses utilizing current diesel Governmental Affairs be authorized to 10 a.m. to hold a hearing to receive tes- technology. meet on Tuesday, March 12, 2002 imme- timony on environmental enforcement. (iii) Other means. diately following the first roll call vote The hearing will be held in SD–406. (B) Feasible schedules for carrying out the of the day for a business meeting to The PRESIDING OFFICER. Without conversions. consider the nominations of: (1) Louis objection it is so ordered. (C) Estimated costs of carrying out the Kincannon to be Director of the Cen- conversions. sus, and (2) Jeanette Clark to be an As- f (D) An assessment of the benefits of the conversions in terms of emissions control sociate Judge of the Superior Court of APPOINTMENT the District of Columbia. and reduction of fuel consumption. The PRESIDING OFFICER. The The PRESIDING OFFICER. Without f Chair, on behalf of the President pro objection, it is so ordered. NOTICES OF HEARINGS/MEETINGS tempore, pursuant to Public Law 94– COMMITTEE ON SMALL BUSINESS AND 201, as amended by Public Law 105–275, ENTREPRENEURSHIP COMMITTEE ON INDIAN AFFAIRS appoints Dennis Holub, of South Da- Mr. INOUYE. Mr. President, I would Mr. REID. Mr. President, I ask unan- kota, as a member of the Board of like to announce that the Committee imous consent that the Committee on Trustees of the American Folklife Cen- on Indian Affairs will meet on Thurs- Small Business and Entrepreneurship ter of the Library of Congress. day, March 14, 2002, at 10 a.m. in Room be authorized to meet during the ses- 485 of the Russell Senate Office Build- sion of the Senate for a vote regarding f the Nomination of Melanie R. ing to conduct an oversight hearing on ORDERS FOR WEDNESDAY, MARCH Sabelhaus to be Deputy Administrator the President’s budget request for In- 13, 2002 dian programs for fiscal year 2003. of the U.S. Small Business Administra- Those wishing additional information tion, on Tuesday, March 12, 2002, imme- Mr. LEVIN. Madam President, I ask may contact the Indian Affairs Com- diately following the first vote of the unanimous consent that when the Sen- mittee at 224–2251. Senate. ate completes its business today, it ad- journ until the hour of 9 a.m., Wednes- f The PRESIDING OFFICER. Without objection it is so ordered. day, March, 13; that following the pray- AUTHORITY FOR COMMITTEES TO SUBCOMMITTEE ON EMERGING THREATS AND er and pledge, the Journal of pro- MEET CAPABILITIES ceedings be approved to date, the COMMITTEE ON ARMED SERVICES Mr. REID. Mr. President, I ask unan- morning hour be deemed expired, the Mr. REID. Mr. President, I ask unanimous consent that the Subcommittee time for the two leaders be reserved for imous consent that the Committee on on Emerging Threats and Capabilities their use later in the day, and there be Armed Services be authorized to meet of the Committee on Armed Services a period of morning business until 9:30 during the session of the Senate on be authorized to meet during the ses- a.m., with the time under the control Tuesday, March 12, 2002, at 9:30 a.m., in sion of the Senate on Tuesday, March of Senator ALLEN; further, at 9:30 a.m., closed session to receive a classified 12, 2002, at 2:30 p.m., in open and pos- the Senate resume consideration of the briefing on current military oper- sibly closed session to receive testi- energy reform bill, for debate only in ations. mony on special operations capabili- relation to ethanol until 11:30 a.m., The PRESIDING OFFICER. Without ties, operational requirements, and with the time equally divided between objection, it is so ordered. technology acquisition, in review of Senators NELSON of Nebraska and BOND or their designees; further, that at 11:30 COMMITTEE ON BANKING, HOUSING, AND URBAN the defense authorization request for AFFAIRS fiscal year 2003. a.m., the Senate proceed under the pre- Mr. REID. Mr. President, I ask unan- The PRESIDING OFFICER. Without vious order. imous consent that the Committee on objection it is so ordered. The PRESIDING OFFICER. Without objection, it is so ordered. Banking, Housing, and Urban Affairs SUBCOMMITTEE ON INTERNATIONAL SECURITY, be authorized to meet during the ses- PROLIFERATION AND FEDERAL SERVICES f sion of the Senate on Tuesday, March Mr. REID. Mr. President, I ask unan- 12, 2002, at 10 a.m. to conduct an over- imous consent that the Committee on PROGRAM sight hearing on ‘‘The U.S. Economic Governmental Affairs’ Subcommittee Mr. LEVIN. The next rollcall vote Outlook.’’ on International Security, Prolifera- will occur at approximately 11:50 a.m. The PRESIDING OFFICER. Without tion and Federal Services be authorized in relation to the Levin CAFE amend- objection, it is so ordered. to meet on Tuesday, March 12, 2002, at ment.

VerDate Mar 15 2010 20:30 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\2002SENATE\S12MR2.REC S12MR2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S1798 CONGRESSIONAL RECORD — SENATE March 12, 2002 ADJOURNMENT UNTIL 9 A.M. CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE RESERVE AND FOR APPOINTMENT TO THE GRADE INDI- AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION CATED UNDER TITLE 10, U.S.C., SECTIONS 3038 AND 601: TOMORROW 601: To be lieutenant general To be lieutenant general Mr. LEVIN. Madam President, if MAJ. GEN. JAMES R. HELMLY, 0000 there is no further business to come be- LT. GEN. ROBERT C. HINSON, 0000 fore the Senate—and I thank the Chair THE FOLLOWING NAMED OFFICER FOR APPOINTMENT f for her patience tonight—I ask unani- IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE mous consent that the Senate stand in AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION CONFIRMATION adjournment under the previous order. 601: Executive nomination confirmed by There being no objection, the Senate, To be lieutenant general the Senate March 12, 2002: at 7:49 p.m., adjourned until Wednes- MAJ. GEN. DUNCAN J. MCNABB, 0000 THE JUDICIARY day, March 13, 2002, at 9 a.m. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- RALPH R. BEISTLINE, OF ALASKA, TO BE UNITED f CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE STATES DISTRICT JUDGE FOR THE DISTRICT OF ALASKA. AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION NOMINATIONS 601: f Executive nominations received by To be lieutenant general the Senate March 12, 2002: LT. GEN. JOSEPH H. WEHRLE JR., 0000 WITHDRAWAL IN THE AIR FORCE THE FOLLOWING NAMED OFFICER FOR APPOINTMENT Executive message transmitted by IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- THE FOLLOWING NAMED OFFICER FOR APPOINTMENT CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE the President to the Senate on March IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE 12, 2002, withdrawing from further Sen- 601: AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION ate consideration the following nomi- 601: To be lieutenant general nation: To be lieutenant general MAJ. GEN. THOMAS B. GOSLIN JR., 0000 MAJOR GENERAL CHARLES F. BOLDEN, JR., UNITED LT. GEN. BRUCE A. CARLSON, 0000 IN THE ARMY STATES MARINE CORPS, TO BE DEPUTY ADMINISTRATOR OF THE NATIONAL AERONAUTICS AND SPACE ADMINIS- THE FOLLOWING NAMED OFFICER FOR APPOINTMENT THE FOLLOWING NAMED UNITED STATES ARMY RE- TRATION, WHICH WAS SENT TO THE SENATE ON FEB- IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- SERVE OFFICER FOR APPOINTMENT AS CHIEF OF ARMY RUARY 26, 2002.

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